Pre-export financing

 

Are you planning to export your products? Consider this type of financing.

Pre-export financing ‐ financing of raw materials/goods purchase for further manufacturing of finished goods and/or goods export / financing of operating expenses of producers which export finished goods.

This type of product is chosen, first of all, by the companies with strong relations with foreign buyers.

Export is made in favor of counter-parties with acceptable for OTP Bank payment risk or whose risk is minimized by utilization of documentary instruments. Export proceeds are directed to the loan repayment.

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: up to 3 years.

Tenor of each tranche within the limit: 30-180 days (depending on character and peculiarities of the borrower’s business)

Currency of financing: usually currency of export contracts ‐ USD, EUR. Financing in UAH is also possible.

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;
  • pledge of property rights under export contracts;
  • 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.