Download Trade Finance Department

Trade Finance Department
Warsaw, 2016
With BGK the future starts today
BGK’s mission is supporting
social and economic growth of
Poland and the public finance
sector in the performance of its
tasks
Polish
Development Bank
Foreign Trade
Support
For whom?
Products
Our Client’s
transactions
2
Foreign Trade Support
• We support higher-risk markets disregarded by the majority
of commercial banks (Africa, Russia, Belarus, Kazakhstan, the Balkans,
and many others),
• Our pricing results from the strategy of Polish exports support
and reflects the actual cost of capital and accepting the risk,
• We were entrusted with carrying out Government Programme
of Financial Support for Exports.
Polish
Development Bank
Foreign Trade
Support
For whom?
Products
Our Client’s
transactions
3
For whom?
Foreign trade companies seeking for:
•
Mitigation of transaction risks by accepting by BGK the insolvency risk
of a contracting party,
•
Improvement of liquidity as a result of receiving payment at sight for the sold
goods,
•
Financial support for a buyer,
•
Support for their foreign expansion projects.
Polish
Development Bank
Foreign Trade
Support
For whom?
Products
Our Client’s
transactions
4
Trade finance and foreign
expansion products
Buyer’s bank credit
L/C postfinancing
Buyer’s credit
L/C discounting
Purchase of receivables
L/C confirmation
Foreign Expansion Fund
Guarantees
Polish
Development Bank
Foreign Trade
Support
For whom?
Products
Our Client’s
transactions
5
Financing based on documentary
letter of credit
Main
characteristics
Type
financing consumption and investment exports, mitigates transaction
risk, ensures liquidity
indirect financing (based on financial standing of Importer’s bank)
Maximum
repayment period
2 years
Available
structures
 discounting
 confirming
 postfinancing
Countries
majority of countries



Currency
Polish
Development Bank
Foreign Trade
Support
For whom?
PLN
EUR
USD
Products
Our Client’s
transactions
6
Costs of financing based on
documentary letter of credit
Example
Tenor of financing: 360 days
Annual cost of credit and
insurance* (%)
Russia,
Tunisia
Belarus,
Pakistan
Kazakhstan,
Azerbaijan,
Nigeria
Serbia,
Georgia,
Uzbekistan,
Mongolia
EUR
USD
EUR
USD
EUR
USD
EUR
USD
1.06
2.22
1.68
2.97
1.26
2.47
1.44
2.66
rate for buyer = rate for buyer’s bank + buyer’s bank margin
Exporter bears costs according to BGK fee schedule, while importer according to the issuing
bank’s fee schedule.
*Calculation as of 05.01.2016
Polish
Development Bank
Foreign Trade
Support
For whom?
Products
Our Client’s
transactions
7
Buyer’s bank credit
Type of credit
indirect financing based on financial standing of Importer’s bank
Minimum repayment
period
2 years
Amount of credit
up to 85% of contract value, min. EUR 1 m
Countries
majority of countries
Cost of credit
incurred by Importer
Purpose
financing exports of investment goods and services



Currency
Polish
Development Bank
Foreign Trade
Support
For whom?
PLN
EUR
USD
Products
Our Client’s
transactions
Costs of financing based on
buyer’s bank credit
Example
Repayment period: 5 years
Disbursement period: 1 year
Russia,
Tunisia
Belarus,
Pakistan
Kazakhstan,
Azerbaijan,
Nigeria
Serbia,
Georgia,
Uzbekistan,
Mongolia
EUR
USD
EUR
USD
EUR
USD
EUR
USD
0.69
2.20
0.69
2.20
0.69
2.20
0.69
2.20
Fixed rate - CIRR (%) – p.a.
Administration commission
(paid annually) (%)
0.7
0.7
0.7
0.7
Minimum KUKE insurance
premium for five-year period
(paid in lump sum) (%)*
3.55
8.79
5.17
6.72
rate for buyer = rate for buyer’s bank + buyer’s bank margin
CIRR valid from 15.12.2015 r. till 14.01.2016 r.
*Rate for debtors whose rating is equal to state rating
Polish
Development Bank
Foreign Trade
Support
For whom?
Products
Our Client’s
transactions
9
Purchase of receivables
Type of credit

financing based on:
 Importer’s balance sheet – no recourse,
Exporter balance sheet – recource to the Exporter
Amount of credit
min. EUR 2 m
Period of financing
up to 5 years



Currency
Countries
Pricing conditions
Polish
Development Bank
PLN
EUR
USD
majority of countries
determined individually based on transaction risk profile
Foreign Trade
Support
For whom?
Products
Our Client’s
transactions
10
Buyer’s credit
Purpose
financing export contracts concluded between a Polish Exporter
and Importer

Type of credit
Amount of credit
Period of financing
financing based on Importer’s balance sheet
 project finance
min. EUR 10 m
up to 15 years (including 3 years of availability period)



Currency
Pricing conditions
Securities
Polish
Development Bank
PLN
EUR
USD
agreed individually according to risk profile of the transaction

Foreign Trade
Support
 project assets,
insurance of the Polish ECA (KUKE S.A.) / other ECA
For whom?
Products
Our Client’s
transactions
11
Foreign Expansion Fund (FEZ)
FEZ along with Polish Partners co-finances their foreign
subsidiaries implementing foreign expansion projects.
FEZ provides long term financing in the form of capital
and loans granted on market conditions.
Co-financing:




up to the amount of Polish Partner’s investment
no minimum amount
usually up to EUR 12.5 m per one project
for the period of 5-7 years
Polish
Development Bank
Foreign Trade
Support
For whom?
Products
Our Client’s
transactions
12
Foreign Expansion Fund (FEZ)
Capital instruments:


shares with a possibility of future repurchase by the Polish
Partner under beforehand known conditions
shares convertible to loans with repayment transfer
from the Polish Partner to a foreign Project Vehicle
Debt instruments:


loans secured only with foreign project’s assets,
without recourse to the Polish Partner
subordinated, convertible, not secured loans (mezzanine)
Polish
Development Bank
Foreign Trade
Support
For whom?
Products
Our Client’s
transactions
13
Our Client’s transactions
Examples of supported contracts
Belarus
Mexico
Kazakhstan
Russia
Hotel
construction
Mining
equipment
Mining
equipment
Office building
modernization
EUR 44.0 m
EUR 15.0 m
EUR 8.0
EUR 10.0 m
Great Britain
Ukraine
Russia
Mineral wax plant
Company
acquisition
Vacuum furnaces
Mining
equipment
EUR 48.2 m
EUR 55.6 m
EUR 2.2 m
EUR 18.7 m
China
Serbia
Canada
Netherlands
Investment in
production plants
Construction
machines
Parcel lockers
network
Ship construction
EUR 10.0 m
EUR 1.5 m
USD 37.6 m
EUR 16.0 m
Belarus
Polish
Development Bank
Foreign Trade
Support
For whom?
Products
Our Client’s
transactions
14
Bank Gospodarstwa Krajowego
The State Development Bank of Poland
Trade Finance Department
Al. Jerozolimskie 7, 00-955 Warsaw
Tel: +48 22 522 92 75 e-mail: [email protected]
Trade Finance Sales Team
Karol Jakubaszek
Tel: +48 22 599 83 07
e-mail:
[email protected]
Elżbieta Bugalska
Tel: +48 22 599 83 17
e-mail:
[email protected]
Karol Rozenberg
Tel: +48 22 522 93 76
e-mail:
[email protected]
Joanna Mularczyk
Tel: +48 22 596 58 05
e-mail:
[email protected]