Belgazprombank and AK BARS Bank (the Russian Federation) realized the first transaction under the insurance cover of the Russian Agency for Export Credit and Investment Insurance (EXIAR). In accordance with the terms of the interbank agreement Belgazprombank attracted funds to finance the project of its customer relating to the purchase of products from a Russian exporter.
The realized transaction marks the launch of the new instrument which provides Belgazprombank an opportunity to support long-term projects of its customers under which industrial equipment, machinery, capital and other non-commodity goods manufactured in the Russian Federation are delivered to the Republic of Belarus.
The current transaction is interesting in terms of its structure. While the political and commercial risks of the lender were insured with EXIAR, the structure allowed to provide medium-term financing and decrease the pricing of the loan for one of the key customers of Belgazprombank.
In future Belgazprombank will actively use this instrument to refine the quality of services for its customers carrying out foreign economic activities with partners from the Russian Federation.
Belgazprombank, established in 1990 and controlled by Russia’s Gazprom Group, occupies a leading position in Belarus in lending to small and medium enterprises.
AK BARS Bank, established in 1993, is the authorized bank of the Government of the Republic of Tatarstan and listed amongst Russia’s Top-20 banks. The bank occupies a leading position in the region in lending to the real sector of economy. It services over 66.000 corporate customers and more than 3,2 mln individuals. AK BARS Bank is also an experienced participant of the Russian and international debt capital markets.
The Russian Agency for Export Credit and Investment Insurance (EXIAR) was established in 2011. The primary mission of the agency is to support high tech exports through providing insurance cover of export credits against credit and political risks and providing insurance cover of Russian investments abroad against political risks.
