Trade Finance

Clients engaged in import operations are financed under a foreign trade contract or a domestic contract with a foreign supplier’s subsidiary at a favorable rate with an interbank tied credit, i.e. a foreign bank grants a tied credit to Alfa-Bank, which, for its part, funds the importer. Alfa-Bank’s letters of credit may also provide funding in the form of a payment made to the supplier with money of the foreign bank or Alfa-Bank, in which case the client reimburses Alfa-Bank upon the expiry of a certain period.

Basic conditions:

• A valid import contract with a foreign partner or a domestic contract with a foreign supplier’s subsidiary;
• The period of up to one year for tied credits and up to three years for letters of credit;
• Individual rates apply; may be LIBOR/EURIBOR-based.

Advantages:

• Cheaper than regular credits;
• Whenever a foreign supplier denies the Russian importer a deferred payment or the deferred payment is inconsiderable, Alfa-Bank could offer a financing of up to three years by means of interbank lines (letter of credit with financing).

Basic conditions:

• A valid import contract with a foreign partner or a domestic contract with a foreign supplier’s subsidiary;
• The period of up to one year;
• Individual rates apply.

Advantages:

• A possibility to defer a contract payment by means of a reliable bank’s guarantee to the supplier.

Clients engaged in export operations are financed under an export contract at a favorable rate with an interbank tied credit, i.e. a foreign bank grants a tied credit to Alfa-Bank, which, for its part, funds the exporter (pre-export financing).

Basic conditions:

• An export contract with a foreign partner;
• The period of up to one year;
• Individual rates apply, may be LIBOR/EURIBOR-based.

Advantages:

• Cheaper than regular credits;
• Relevant whenever:
  — the contract does not prescribe any advance payment, or
  — the sum of advance payment prescribed by the contract is insufficient for the exporter, and/or
  — the period between the advance payment and the scheduled shipment date is short.

Advance payment guarantee and performance bond, tender guarantee, and similar standby letters of credit for export contracts in favor of foreign partners.

Basic conditions:

• An export contract with a foreign partner;
• The period is consistent with contract terms, not less than the period of contractual obligations’ fulfillment by the exporter;
• Individual rates apply.

Used in cases when you need:

• To receive an advance payment under the contract;
• To replace a bidding deposit;
• To prove your ability to execute the contract.

Guarantees may also be given in client’s favor within documentary limits on correspondent banks.

Alfa-Bank finances clients importing equipment with long-term credits covered by Export Credit Agencies (ECA).

Basic conditions

• The period from three to ten years;
• The minimal sum of $1 000 000;
• Individual rates based on floating LIBOR/EURLIBOR apply; the rate may be fixed upon the credit drawdown.

Advantages of ECA-covered financing

• Cheaper than regular credits;
• The possibility of long-term financing, up to ten years;
• A grace period.

Alfa-Bank and the Government of Belarus entered into an agreement on terms of credits for procurement of Belarusian goods in Russia on 01.08.2016.

Program features:

The program partially subsidizes the interest on credits granted by the Bank for procurement of Belarusian goods in Russia. Belarus provides the subsidies to the amount of the Russian Central Bank’s refinancing rate as of the credit issuance date.

Basic conditions:

• The loan term of up to five years;
• Individual credit rates apply;
• The credit amounts up to 90% of the goods’ cost;
• Procured equipment is used as collateral;
• Credit drawdown within a calendar year.

Advantages:

• The possibility of long-term financing at a uniquely low rate.