public stock company “joint stock commercial industrial & investment ... · pdf...
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Public stock company “Joint Stock Commercial
Industrial & Investment Bank” (PSC Prominvestbank)
Trade & Structured Finance
90 years of experience of servicing corporate clients
Positive image in the international markets
Broad range of branches all across the country
Vast experience of co-operation with leading European and American banks
Top 10 Ukrainian bank
Subsidiary of Vnesheconombank (one of the largest Russian banks)
Correspondent network enabling fast and high quality settlement of payments
A team of professionals which will help you to elaborate a trade finance instrument which best suits the needs of every individual trade finance-related project of a customer
From its very foundation the Bank is one of the largest Ukrainian banks and in 2010 it has been honoured as one of the most important financial institutions for the country’s development.
Prominvestbank is also among the largest and most reliable creditors to the Ukrainian economy having invested throughout the years of independence (1991-present days) more than USD 60 billion into various branches of the economy ranging from agriculture sector to aircraft construction.
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PROMINVESTBANK’S TRADE FINANCE FACILITIES
Pre-export/ Post-export Financing
usually applied for readily marketable staples (raw materials, commodities, consumables, spare parts, different types of equipment)
Post-import Financing (DP LC with discounting, LC with post-financing)
Post-import Financing (DP LC with discounting, LC with post-financing)
used for financing different types of equipment with repayment cycle not more than 3 years
Import Financing employed for import financing of equipment with long-term self-repaid period and long manufacturing process
Short term financing (from 30-180 days up to 1 year)
Medium term financing ( from 1 to 3 years)
Long term financing (up to 3 – 5 years)
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TRADE FINANCE INSTRUMENTS
Trade Finance solutions involve structuring facilities using a combination of the Prominvestbank’s products to satisfy customer requirements
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• sight payment L/C • deferred payment L/C with discounting • sight L/C with post-financing
DOCUMENTARY LETTERS OF CREDIT (L/C)
STAND BY LETTERS OF CREDIT (SBLC)
• payment guarantees • advance payment guarantee • loan repayment guarantee
GUARANTEES
• short term (PIB’s bilateral loans facilities with foreign banks) • long term (financing under ECA)
IMPORT FINANCING OF CAPITAL GOODS & EQUIPMENT
LETTERS OF CREDIT IN BRIEF
LCs are not only the standard method of payment for foreign business transactions in many countries, but also efficient tool for financing of the underlying deal
Letters of credit are useful for both parties - exporter and importer. Exporter can be credited with the LC-amount shortly after the dispatch of the goods and on presentation of the stipulated documents
Importer can ensure that payment will be effected only if the documents proving the shipment of the merchandise are in strict conformity with the required L/C terms
Deferred payment L/C allows the exporter to provide his counterparty with delay in payment. At the same time the possibility to discount shipping documents by the exporter’s bank enables exporter to raise funds far before maturity
L/C with post-financing clause has very similar structure, but another mechanism of realization. L/C issued by the importer’s bank is available by sight presentation with exporter’s bank. L/C terms contain financing instructions to the exporter’s bank from the issuing bank and stipulate repayment on agreed maturity
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DEFERRED PAYMENT LC WITH DISCOUNTING
FOREIGN BANK
EXPORTER IMPORTER Purchase contract
LC with deferred payment
A
pp
lica
tio
n f
or
LC
wit
h d
efe
rre
d
pa
ym
ent
issu
e
Shipment
Shipping documents
Payment at maturity
S
hip
pin
g d
ocu
men
ts
P
ay
men
t a
t m
atu
rity
A
dv
ice
of
LC
R
eq
ues
t to
dis
cou
nt
ship
pin
g
do
cum
en
ts b
efo
re m
atu
rity
D
isco
un
tin
g u
nd
er L
C b
efo
re
ma
turi
ty
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LC WITH POSTFINANCING
FOREIGN BANK
EXPORTER IMPORTER Purchase contract
Sight LC with request for post-financing + Agreement (if necessary)
A
dv
ice
of
LC
A
pp
lica
tio
n f
or
sig
ht
LC
iss
ue
+
Ag
reem
en
t fo
r p
ost
-fin
an
cin
g
Shipment
C
om
ply
ing
pre
sen
tati
on
of
ship
me
nt
do
cum
ents
P
ay
men
t u
nd
er L
C
Shipping documents
Informing of post-financing provided
S
hip
pin
g d
ocu
men
ts
I
nfo
rmin
g o
f p
ost
-fin
an
cin
g
pro
vid
ed
R
epa
ym
ent
at
ma
turi
ty
Repayment at maturity
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GUARANTEES /SBLCs IN BRIEF
Advance payment guarantees allow Exporter to receive an advance before the shipment (or start of production) of the Goods, and provide security to Importer of the advance refund in case of Exporter’s default of his Contract obligations in terms of shipment
Payment guarantees provide financial security to the foreign exporter should Ukrainian importer fail to make payment for the goods or services supplied. Therefore this type of guarantees enables Ukrainian company to avoid premature withdrawal of working capital and to accumulate funds for timely payment at maturity
SBLCs are applicable in import-export business, primarily with the American and frequently in the Far East as well, or wherever the contracting parties decide to use this form as a security instrument. Usually the same types of SBLCs as the guarantees are used
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ADVANCE PAYMENT GUARANTEE/SBLC
FOREIGN BANK
IMPORTER EXPORTER
Purchase contract
Advance payment Guarantee/SBLC
Delivery
Advance Payment
A
dv
ice
of
Gu
ara
nte
e/S
BL
C
A
pp
lica
tio
n f
or
gu
ara
nte
e /
SB
LC
is
sue
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PAYMENT GUARANTEE/SBLC
FOREIGN BANK
EXPORTER IMPORTER
Purchase contract
Payment Guarantee/SBLC
Ad
vic
e o
f G
ua
ran
tee/
SB
LC
A
pp
lica
tio
n f
or
gu
ara
nte
e/S
BL
C
issu
e
Delivery
Payment
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FINANCING IN BRIEF
Export credit agencies (ECAs) have been established by governments in the most developed markets specifically for the purpose of furthering their export trade flows. ECAs provide a variety of different insurance or guarantee products to support financing for specific export contracts, overseas investments and, on an ‘untied’ basis, in other strategic or competitive bidding situations – often on more advantageous terms than would be available on a stand-alone basis
Advantages of ECA covered transactions
long repayment periods (including a grace period)
fixed interest rate options available
security of payments for exporter
significant importer’s country risk mitigation (up to 95%)
cover is available in most convertible currencies
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ECA COVERED FINANCING
FOREIGN BANK
EXPORTER IMPORTER
(1) Purchase contract
(11)
Pa
ym
ent
(5)
Lo
an
ag
reem
ent
(6) 15% advance payment
(4) Master Credit Agreement
(7)
Ap
pli
cati
on
fo
r L
/C/g
ua
ran
tee
issu
e
(8) L/C/guarantee for 85% contract value
(9) Shipment
(12
) A
dv
ice
of
Lo
an
p
rov
ided
(13
) R
epa
ym
ent
(10
) S
hip
men
t d
ocu
men
ts
(12) Advice of Loan provided
(13) Repayment
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OUR TRADITIONAL PARTNERS IN TF
We cooperate with many foreign banks in TF business, but the closest and long-term cooperation in the field has been established with the following banks: We are constantly working on enhancing our partner banks in trade finance-related area representing different parts of the world
Bank of New York Mellon
JP Morgan Chase Bank NA
Citibank NA
Wells Fargo Bank NA
Deutsche Bank AG
Commerzbank AG
Credit Suisse
UBS AG
Crédit Agricole CIB
Nordea Bank Finland Plc
SMBC
BNP Paribas SA
Banca Nazionale del Lavoro SpA
Intesa Sanpaolo SpA
Landesbank Berlin AG
Rabobank, International
UniCredit Group
Bank of Tokyo-Mitsubishi UFJ Ltd
Sumitomo Mitsui Banking Corporation
Promsvyazbank, Russia
VTB, Russia
Novikombank, Russia 13
CONTACTS
Foreign Economic Affairs Department
+38 (044) 364-67-24 – Director of Department
Maksym Kyrychenko
+38 (044) 364-65-67 – Deputy Director of Department
Nataliya Kovtun
Trade and Structure Finance
Head of TSF Diana Lemesh
+38 (044) 364-65-00
+38 (044) 364-65-03 Nataliya Zhidchenko
+38 (044) 364-65-04 Svetlana Sayapina
+38 (044) 364-65-69 Alina Bogoslavets
+38 (044) 364-66-46 Konstantin Motora
+38 (044) 364-69-24 Yulia Glinskaya
+38 (044) 364-67-77 (ext. 2553) – Project Manager of Foreign Economic Affairs Department
Alexander Maly