Transcript Slajd 1 - מחלקה לקידום סחר והשקעות

Presentation for
Importers
Financing for contracts with Polish suppliers
within the Government Exports Support Program
December 2010
BGK – basic information
 Support for Polish economy by:
 European Funds distribution (Regional
Development)
 State funds management (Roads, Railways,
Housing)
 Management of Government Support
Programs (Entrepreneurs & Exports
Support, Family Housing, First Business)
 Diversified banking products offer for
municipalities and businesses.
 BGK is the only state owned bank in
Poland established in 1924
 BGK is granted with the legislative
mandate to play the role of Polish
“ExIm Bank”
 Total assets of 17 billion USD (as of the
end 2009) – 6th position in the Polish
banking sector*
 21 Branches in all provinces
 Active cooperation with municipal and
public entities:
1-2 position in Poland in loans for
municipal bodies gives ,
1 position in Poland in deposits of public
bodies
 HQ located in the center of Warsaw (9
km from the Chopin International
Airport)
*including flow funds
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Broad BGK’s offer for companies
Commercial export finance:
Government Support Programs in BGK:
•Exports Support Program:
 Buyer’s credit “bank-to-bank” (from 2 to 10
years)
 Buyer’s credit “direct” from 2 to 10 years)
 Letters of credit postfinancing (up to 2 years)
• Deferred payment Letters of credit discounting
(up to 2 years)
•DOKE program of interest rate support for fixed-rate
export loans
•Entrepreneurs Support program with the use of
financial guarantees
• Letters of credit postfinancing
• Deferred payment Letters of credit discounting
• Postfinancing of advance payments related to buyer’s
credit “bank-to-bank”
Trade documentary operations:
•
•
•
•
Export Letters of credit (including confirmations)
Import Letters of credit
D/P collections
Bank Guarantees
Project Finance:
• Buyer’s credit
• Syndicated financing
Accounts, settlements, loans:
• Working capital
• Investment loans
• Bank guarantees
BGK’s offer for companies
Treasury products:
•
•
•
•
Forex operations
Deposits with negotiable interest rates
Derivatives protecting against financial risks
Cash flow management
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Government Exports Support Program
Advantages
 Availability of short and long term
financing at preferential, low cost
 Optional fixed interest financing that is
unchanged during the whole period of
the agreement
 Financing available also for the buyers
located in the increased (non-market)
risk countries
 Financing offered as package together
with the insurance (BGK arranges the
insurance free of charge)
 Available loan disbursement in
installments according to the contract
execution schedule
Government Exports Support Program
Program „in a nutshell”
The aim of the Program is the stimulation
of Polish exports by enhancing
competitiveness of the enterprises’ offer
for foreign markets.
The Program particularly has to support
the export activity on increased political
risk markets
Up to EUR 1,43 billion have been
assigned for granting preferential export
loans until the end of 2015
The Program is dedicated for all types of
companies irrespective of their turnover
or the number of employees.
The Program is managed by BGK on the
basis of a non-profit formula.
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Geographical scope of the Government Exports
Support Program
from 2 to 10 years
up to 719 days
The application for the limit can be
placed by exporter, importer or
importer’s bank.
L/C Postfinancing and
Deferred payment L/C
discounting
– increased political risk
countries only*
Buyer’s credit “bank-to-bank”
& “direct”
– all countries for which limits
are established
*all countries excluding: all European Union
members, Iceland, Norway, Switzerland, Japan,
Australia, New Zealand, Canada and USA
Government Exports Support Program
Limits for bank/s from the following
countries have so far been
established:
Russia,
Belarus,
Kazakhstan,
Georgia,
Azerbaijan,
Serbia,
Turkey,
Indonesia,
Czech Republic,
Moldova,
Ukraine,
Bosnia,
Argentina,
Uzbekistan.
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L/C Postfinancing
& Deferred payment L/C discounting
within
the Government
Exports Support
Program
Basic requirements for L/C Postfinancing & Discounting
within the Government Program
1. Polish origin of
products / services
The share of the Polish
components minimum
50%
Exceptions:
40%
 Fiber-optic cables
 Agricultural and sports
aircrafts
 Pharmaceutical products
2. Importer based in
the “increased risk
country”
3. Availability of a
credit limit for the
importer’s bank
4. Settlement
based on L/C
• Examples of “increased risk
countries”:
 Azerbaijan
• A precondition for approval
Irrevocable obligation of a
 Belarus
of a foreign bank is the
financial standing .
 Russia
10%
 Construction services
of an exporter when the
conditions of the Letter of
 Ukraine
• BGK already established
 Moldova
limits for more than 30
exporter submits
 Kazakhstan
foreign banks
conforming documents to
20%
 IT systems
 Electronic products
 Telecom products
foreign bank to pay in favor
positive evaluation of the
credit are fulfilled i.e. the
BGK within the validity
If the conditions no. 1 or
2 are not met, importer
may obtain financing
offered within the BGK’s
commercial offer
• New credit limits are made
after inquiry by an
interested party: exporter,
importer or importer's bank.
period according to the
terms specified in the
Letter of credit
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Costs of L/C Postfinancing & Discounting
Costing components
Interest rate / discount rate:
1) EURIBOR / LIBOR fixed for the whole period
of financing two days prior to the date of payment
to the beneficiary; the day-count of the reference
interbank rate is adequate to the period of
financing (for more than 1 year a 12M rate is
applicable )
2) BGK’s margin (includes KUKE insurance
premium)
Advantages:
 credit application free of charge, no commissions for
credit disbursement and credit
0 administration
 fixed interest rate throughout repayment period
 BGK arranges credit insurance without any additional
fees
Non-price parameters of the credit:
 financing of up to100% of the contract value
Margin and commission for Importer’s bank
(importer makes the respective arrangement
with the importer’s bank)
 maximum repayment period 719 days
Costs of credits in EUR (BGK’s margin + EURIBOR):
Russia
Belarus
360 days
3,5% p.a.
719 days
3,7% p.a.
360 days
4,3% p.a.
719 days
4,5% p.a.
As of 8th December 2010
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Letter of Credit POSTFINANCING
L/C postfinancing – credit provided by BGK to an importer’s bank that opens a Letter of Credit in
favor of a Polish exporter. Payments to the exporter are made upon presentation of documents
complying with the L/C terms.
L/C Postfinancing scheme
arrangement of a limit or use of
existing limit for importer’s bank
Exporter makes an offer for
importer with postfinancing option
Conclusion of
contract
between
importer and
exporter
BGK provides an offer for L/C
postfinancing to Importer’s
bank
Importer’s bank submits a credit
offer to importer
Importer’s bank opens L/C
Execution of
contract
Exporter presents documents
complying with L/C terms
BGK makes payment to
exporter (importer’s bank is
granted a credit)
The credit is repaid to BGK by importer’s bank at the end of postfinancing term
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Deferred payment L/C discounting
Discounting of receivables under a deferred payment Letter of credit – payment before the due date
to an exporter reduced by a discount value.
L/C Discounting scheme
Arrangement of a limit or use of
existing limit for importer’s bank
Conclusion of
contract
between
importer and
exporter
Importer’s bank opens L/C with
deferred payment
Execution of
contract
Exporter presents documents
complying with L/C terms
Confirmation of L/C terms by
Exporter
BGK’s offer for exporter for
L/C discounting
Exporter’s application for L/C
discounting placed with BGK
BGK makes payment to
exporter (reduced by discount
value)
BGK receives payment from importer’s bank on the due date specified in the L/C
Obligatory L/C terms:
Limit established for Importer’s bank
Maximum period of 719 days of deferred payment
L/C available with BGK
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Buyer’s credit “bank-to-bank”
within
the Government
Exports Support
Program
Comparison of
buyer’s credit “bank-to-bank” &
buyer’s credit “direct”
Buyer’s credit “bank-tobank”
Buyer’s credit “direct”
Complete productive units, machinery or
equipment intended for productive or
commercial use
Contract subject
Complete productive units, machinery or
equipment intended for productive or
commercial use
Above 5.000.000 EUR
Recommended contract’s
value
Above 200.000 EUR
1.Contract (draft)
2.Business plan
3.Financial statements
1.KUKE insurance policy
2.Other (depends on importers status,
Required enclosures to credit
application
Collaterals
contract type ant the financing range)
1.Financial and Insurance (BGK’s)
2.Legal opinion
3.„Due diligence” cost (depends on the
Kredyt dla banku nabywcy
1. KUKE insurance policy
2. Collaterals required by importer’s
bank
Costs
1.Financial and Insurance (BGK’s)
2.Importer’s bank margin and
commission
Responsible BGK’s unit
Foreign Trade Support Department
(Departament Wspierania Handlu
Zagranicznego DWHZ)
project)
Project Finance Department
(Departament Finansowania Projektów
Inwestycyjnych DFPI)
Contract (draft)
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Buyer’s credit „bank-to-bank” – Basic data
• Repayment from 2 to 10 years:
•Complete productive units,
•Machinery or equipment for production or
commercial use
Advantages for Importer
• Importer’s seat in any country
• Minimum advance payment 15%
• Required Polish origin of the exported
goods / services
• Obligatory credit insurance by KUKE
(arranged by BGK)
• Available currencies: EUR & USD
• Preferential costs of the loan for
purchase of Polish goods and services
• Payment under credit against:
• Financing available also for increased
risk markets
 Documents that confirm the contract execution
 „Documents consistency statement” signed by
importer and importer’s bank
 Invoice
• Loan repayment in equal installments of
a maximum duration of 6 months, 1st
installment to be paid after maximum 6
months from the credit consolidation (full
execution of the export contract)
Buyer’s credit “bank-to-bank”
• Available fixed interest rates valid for
the whole period of financing
• Loan offered as package together with
the insurance (BGK arranges the
insurance free of charge)
• Available loan disbursement in
installments according to the contract
execution schedule
• Optional credit facility for obligatory
advance payment within BGK’s
commercial offer (L/C postfinancing)
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Cost of buyer’s credit incurred by Importer
What are CIRR rates
(Commercial Interest
Reference Rates)
Minimum interest rates applied by
countries that signed OECD
arrangement on “officially
supported export credits”
EUR
USD
2-5 years
2,23%3
5-8,5 lyears
2,77%3
8,5-10 years
3,25%
2-5 years
1,57%3
5-8,5 years
2,18%3
8,5-10 years
2,85%3
Fixed
Floating
interest rate
interest rate
CIRR rate
EURIBOR + margin
Depends on the financing period (credit
disbursement period + repayment period)
Margin depends on the repayment
period from 1,2% to 2,7% p.a.2
1
Administration fee 0,5% p.a. (paid upfront, for the 1st year calculated on the loan
amount and in the consecutive years calculated on the outstanding loan amount)
3
Available 120 days maximum
validity for the fixed interest rate
If the rate is fixed before the
export contract conclusion the
interest rate is increased by 0,2%
Current CIRR rates are
published on BGK’s web page
Buyer’s credit “bank-to-bank”
KUKE insurance premium (paid upfront, possibility of financing under the loan)
Importer bank’s margin and commission (negotiated by Importer)
Legal opinion cost (for loans above 10 mln EUR) 4
Opcjonalnie:
Koszty opinii
prawnej***
No fee
for credit application
charged
by BGK
No commission
Opcjonalnie:
forKoszty
credit opinii
disbursement
prawnej***
by BGK
1 LIBOR applicable for USD respectively
2 BGK’s margin valid in December 2010
3 Interest rates applicable from 15/11/2010 to 14/12/2010
4 Borrower is obliged to submit a legal opinion prepared by an independent law office located in the borrower’s country and in
accordance with the BGK’s template; for loans above EUR 20 mln the legal opinion has to be prepared by a reputed office
approved by BGK and located in the borrower’s country
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Contract – required articles
Recommended consultation of the payment terms stipulated
in the contract that is expected to be financed under the
buyer’s credit “bank-to-bank”. To ensure an effective
execution of the contract it is required to specify in the
contract:
•Documents necessary for the credit disbursement,
•Method of advance payment,
•Exporter’s obligations and the time of their fulfillment,
•Detailed scope of contract financed by the buyer’s credit
“bank-to-bank”,
•Stipulation that the contract enters into force only when the
credit is granted (if the only option to execute the contract is
financing under the buyer’s credit “bank-to-bank”)
Insurance premium
Depends on:
- rating of the borrower’s country
- repayment period and
- borrower’s financial standing (importer’s bank)
Insurance premium can be financed under the buyer’s
credit “bank-to-bank”
Insurance premium is payable upfront before the first
disbursement (if it is not financed under the buyer’s credit
“bank-to-bank”)
Insurance premium is individually calculated for each
transaction by KUKE SA
Buyer’s credit “bank-to-bank”
Estimated insurance cost
for buyer’s credit “bankto-bank”
Repayment period
2
years
3
years
5
years
Czech Rep.
0,75 %
0,89 %
1,16 %
Russia, Turkey,
Indonesia
1,93 %
2,61 %
3,96 %
Kazakhstan
2,66 %
3,53 %
5,29 %
Georgia, Serbia
3,56 %
4,64 %
6,82 %
Belarus, Moldova,
Bosnia
4,75 %
6,07 %
8,70 %
Assumption: disbursement in one
installment
As of December 2010
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Procedure of buyer’s credit “bank-to-bank” conclusion
Exporter
3. “Agreement” signature
5. Insurance of the credit
KUKE
1. Contract conclusion
BGK
Importer
2. Loan agreement
conclusion
4. Loan agreement
conclusion
Importer’s Bank
1.
Conclusion of Contract between Exporter and Importer
2.
Conclusion of Loan Agreement between BGK and Importer’s Bank
3.
“Agreement” conclusion between BGK and Exporter that defines the terms of credit utilization by Exporter, the
procedure of disbursements and stipulates the terms of cooperation during disbursement and repayment
periods of the buyer’s credit “bank-to-bank”
4.
Loan agreement conclusion between Importer’s bank and Importer (buyer of Polish products/services)
5.
Insurance of the BGK’s loan with KUKE (application for insurance arranged by BGK)
Buyer’s credit “bank-to-bank”
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www.bgk.com.pl
In case of interest, questions, queries please
CONTACT
Product
Responsible unit
Buyer’s credit „bank-to-bank”,
Postfinancing of advance payments
(required for buyer’s credit “bank-to-bank”)
Foreign Trade Support Department
ph. +48 22 596-5950, 522-9206, 522-9372
e-mail: [email protected],
[email protected],
[email protected]
fax +48 22 522-9128
Buyer’s credit „direct”
Project Finance Department
ph. +48 22 522-9402, e-mail: [email protected]
fax +48 22 583-8265
L/C postfinancing, L/C discounting, L/C
confirmation, Documentary Operations
Foreign Trade Support Department
ph. +48 22 522-9665, e-mail: [email protected]
fax +48 22 522-9128
Trade and Investment Promotion Section
of Polish Embassies, Ministry of Economy
Ministry of Economy
ph. +48 22 693-5000, fax +48 22 693-4046
http://polska.trade.gov.pl/en/
Korporacja Ubezpieczeń Kredytów
Eksportowych SA
ph. +48 22 356-8300, fax +48 22 313-0119
e-mail: [email protected]
http://www.kuke.com.pl/home.php
Contact BGK!
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