Import financing

 

Do you want to develop business with help of foreign suppliers? Then you will be interested in this type of financing.

Import financing ‐ financing of goods/raw materials import for their further sale on local market of Ukraine as well as for maintenance of current production activity of the companies.

Bank provides credit funds for direct payments to the foreign seller.

Proceeds from sale of goods /products produced are directed for the loan repayment. Participation of OTP Bank in import operations can also be made through issuance of documentary instruments (documentary letters of credit, bank guarantees). During structuring of transaction, it is also important to consider current currency legislation.

Basic conditions of financing:

Minimum amount: UAH 4 000 000 (or equivalent in foreign currency).

Type of financing: revolving credit line or term loan.

Tenor of financing: usually up to 1 year (limits can be established for the period of up to 3 years).

Tenor of each tranche within the limit: 60-90 days (depending on operational cycle of the borrower).

Currency of financing: EUR, USD. Financing in UAH is also possible (if allowed by legislation).

Pricing:

Interest rate:

  • for USD and EUR - LIBOR / EURIBOR + margin or current market rate;
  • for UAH - fixed or current market rate.

Organization fee: defined individually.

Pricing depends on borrower’s financial standing, deal structure, collateral quality under the deal, financing period, current situation on monetary and financial markets.

Possible collateral (or its combination):

  • pledge of fixed assets (property complexes, real estate, equipment, vehicles, agricultural machinery);
  • pledge of goods in turnover;
  • pledge of property rights under deposits placed in OTP Bank;
  • credit repayment guarantee of other bank acceptable for OTP Bank;
  • financial surety (corporate guarantee) issued by a company acceptable for OTP Bank;
  • financial surety of the borrower`s owners.