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30/03/12 Export credit agency of Canada provided 275 million USD to Sberbank
Export Development Canada (EDC), Canada’s official export credit agency, provided 275 million USD for 3 years to Sberbank
Under the agreement, EDC financing is aimed at support of the transactions where Sberbank’s customers are buying Canadian supply and services.
Andrey Donskikh, Deputy Chairman of the Board of Sberbank of Russia, commented: “The facility granted by EDC to Sberbank ensures additional capacity for financing Sberbank’s clients, throughout Russia, to procure Canadian capital goods and services, which will contribute to further development and the increase of trade volumes between Russia and Canada.”
Rajesh Sharma, EDC Senior Vice President, informed that in addition to this important financing, EDC also partners with Sberbank on several new measures of cooperation in the context of further development of Canadian-Russian trade.
EDC is Canada’s export credit agency, offering innovative commercial solutions to help Canadian exporters and investors expand their international business. EDC partners with more than 7,700 Canadian companies in up to 200 markets worldwide. EDC is self-sustaining and a recognized leader in financial reporting and economic analysis.
29/03/12 Sberbank expects to get a 25-30% share of EXIAR's total export guarantees volume
Andrey Ivanov, Head of Sberbank's Trade Finance and FI Division, informed that, Sberbank expects to get a 25-30% share of total export guarantees volume of the Russian export credit agency (EXIAR), established last year. According to his words, the volume of EXIAR's insurance commitments under the agency's development strategy will be raised from 25 billion RUB in 2012 to 170 billion RUB in 2013 and eventually to 425 billion RUB in 2014.
”We expect that a 25-30% share of this volume will be allocated by Sberbank,” said Ivanov, adding that Sberbank will be the main partner of EXIAR.
EXIAR was established in 2011 by Vnesheconombank, which is the sole shareholder of the agency. EXIAR’s share capital is 30 billion RUB. Russian export insurance agency is aimed at state exports support covering commercial and political risks under medium and long term export and financial loans. EXIAR also covers political risks for Russian investments abroad.
Sberbank's representative assumes that thanks to the launch of Russian export insurance agency, which will take some part of the risks, the largest Russian bank will manage not only to strengthen its leadership on the domestic market of export financing, but also to compete with major foreign banks. Ivanov reminded that now Russian banks are financing only 10% of the national export while the rest of it is financed by foreign competitors.
To develop export financing, which accounts for about 50% share in Sberbank's trade finance portfolio, the bank has formed an export financing department within the trade finance division, Ivanov reported.
According to his words, the new department will develop export finance not only in cooperation with EXIAR, but also on its own, paying special attention to preexport financing and supply chain financing. “We will develop financing of all the parts of the supply chain that we will be able to build, thanks to our purchase of the bank in Switzerland and VBI,” said Ivanov.
He explained that Sberbank will cooperate with EXIAR mainly in the deals concerning financing machinery and equipment export, while supply chain financing is aimed at raw materials export support.
Currently Sberbank is considering a number of deals along with EXIAR, informed Ivanov. According to his words, especially this consideration concerns cooperation with Sukhoi Company. ”We are now in the negotiation process with the company and preparing our financing offers for Sukhoi’s export in the countries of Southeast Asia and other regions,” said Ivanov .
He added that Sberbank also negotiate with Irkut Corporation, the producer of new Russian aircraft MS-21. ”We also carry on talks about support of this aircraft export. I do not exclude that CIS, Latin America, Southeast Asia countries and China will be interested in the import,” bank representative said, specifying that this is the problem of 2015.
He also informed that Sberbank cooperates with Russian steel industry companies in the sphere of pipes export support. According to his words, thanks to the support of EXIAR it is possible to organize pipes export not only in the CIS countries but also in Africa and Latin America.
Talking about the Sberbank’s trade finance division results of 2011, Ivanov informed that the bank's export finance portfolio increased from 4 billion USD to 7 billion USD last year. Trade finance and documentary operations turnover grew by 35% to 35 billion USD in 2011.
29/03/12 The banks of BRICS countries will finance each other in national currencies
The banks of BRICS countries will finance each other and their joint projects in national currencies, informed Vnesheconombank. Corresponding agreement was signed by the banks' management in New Delhi during the BRICS countries summit official ceremony in the presence of the heads of member nations.
On behalf of Vnesheconombank the agreement was signed by Vladimir Dmitriev, the bank's chairman. China Development Bank, Export-Import Bank of India, Banco Nacional de Desenvolvimento Economico e Social and Development Bank of Southern Africa also joined the agreement. The banks signed General Agreement on providing credit in national currencies and Agreement on letters of credit confirmation in the framework of BRICS interbank cooperation scheme.
BRICS interbank cooperation scheme was launched on 15 April 2010, after a Memorandum of cooperation of the BRICS countries national financial institutions of development and export support had been signed. The main goals of memorandum signing was comprehensive long-term interbank cooperation for consolidation of trade and economic relations of BRICS countries and socially important and regional projects support.
28/03/12 IFC Partners with Credit Europe Bank to Expand Access to Trade Finance in Russia
IFC, a member of the World Bank Group, and Credit Europe Bank (CEB) have signed an agreement that will help smaller businesses in Russia connect with international customers and suppliers, spurring trade and economic growth. IFC is providing the bank with a 10 million USD guarantee through its Global Trade Finance Program, which helps expand private sector access to global import and export markets.
IFC’s trade finance program in Russia has provided 397 million USD in guarantees covering 164 transactions during the last year. Since its inception in 2005, IFC’s Global Trade Finance Program has issued more than 11,000 guarantees, totaling 15.8 billion USD, in emerging markets.
The initiative is part of IFC’s efforts in Russia to support private sector development and encourage economic growth. The country became a member and shareholder of IFC in 1993. Since then, IFC has invested almost $6 billion in Russia, including $1.5 billion in syndicated loans, and is involved in 250 projects across a variety of sectors.
21/03/2012 Sberbank is willing to provide 2 trillion RUB finance for the modernization of defense industry
Sberbank is going to allocate up to 2 trillion RUB in the next 3-5 years for financing the modernization program of defense industry companies, informed Vladimir Yashin, Head of Sberbank’s engineering industry clients department, at the press conference on Wednesday.
”In defense industry there are practically no companies without problems connected with equipment obsolescence. Sberbank understands the significance of modernization on both state and local levels and is ready to provide about 2 trillion RUB financing for such projects during the next 3-5 years”, stated Yashin. He added that the financing will be provided in the form of credit with up to 15 years term and most of funds are expected to go to shipbuilding and aircraft industries.
According to his words, a significant share of defense industry loans is already being used to finance projects of production facilities modernization and technical reequipment (about 50.5 billion RUB).
On the whole in 2011 Sberbank increased its defense industry credits portfolio by 63% up to 333 billion RUB, the amount of credit lines limits today equals to over 1 trillion RUB, Yashin reported. The share of outstanding debt reduced from 0.90% to 0.51% (up to 204 billion RUB) last year.
As an example of modernization project now waiting for the bank approval, Yashin provided the United Shipbuilding Corporation application for financing the shipyard construction in the Far East. With the total investments in the project amounting to about 35 billion RUB, the company expects to raise up to 25-30 billion RUB of credit funds.
”The decision on the application isn’t made yet… And we don't have any exact figures. We're going to consider how much we are ready to provide,” said Head of Sberbank’s engineering industry clients department.
Yashin told that last year Sberbank provided two especially big loans for the companies of defense industry: 1.04 billion USD financing for the construction of short-medium-range aircraft Irkut MS-21 (Irkut Corporation) and 20.2 billion RUB financing for the construction of the regional jet SSJ (Sukhoi Company). He called approval of these applications a significant event of 2011.
Sberbank has 1,118 clients related to defense industry, among them 375 companies are using the bank’s credit products. Sberbank’s borrowers include Federal Space Agency entities (RKK Energiya im. S.P.Koroleva and Khrunichev State Research and Production Space Center), United Shipbuilding Corporation, United Aircraft Corporation, Tactical Missiles Corporation and others.
20/03/2012 Alfa-Bank has purchased receivables from MMK-METIZ plant
As PRIME business news agency informed, Magnitogorsk Hardware and Sizing Plant MMK-METIZ signed a factoring contract with Alfa-Bank. The plant will assign its receivables to the bank and acquire financing within the given limit of 700 million RUB.
Under the terms of the factoring contract Alfa-Bank will also provide services related to keeping track of the current state of receivables and monitoring accounts receivable payments. MMK-METIZ plant is one of the production units of Magnitogorsk Iron and Steel Works Group.
20/03/2012 Bank of Moscow issued guarantees for MonArch Group
Bank of Moscow provided 2 guarantees of commitments fulfillment amounting to 377 billion RUB for MonArch Group in favor of Itera-SportStroy. These guarantees ensure MonArch Group's fulfillment of obligations under the contracts with Itera-SportStroy for research work, project documentation development and construction services of olympic facility ”Office building for Organizational committee of XXII Olympic and XI Paralympic Winter Games 2014” in Imeretinskaya Lowland of Sochi.
19/03/2012 EXIAR can get 300 billion RUB in state guarantees in 2012
Russian export insurance agency EXIAR can receive state guarantees under its insurance commitments according to the 2012 budget, said Petr Fradkov, EXIAR's CEO, during the Russian economic and financial forum in Switzerland.
”Now we are working on the guarantees under our insurance commitments. As we think, appropriate changes will be made to the 2012 budget,” said Fradkov, specifying that state guarantees will be provided for the full limit of the agency's insurance operations which equals 300 billion RUB.
Vladimir Dmitriev, head of the Vnesheconombank, informed earlier that Russian budget can provide EXIAR with state guarantees for 300 billion RUB in 2013.
EXIAR was established in 2011 by Vnesheconombank, which is the sole shareholder of the agency. EXIAR’s share capital is 30 billion RUB. Russian export insurance agency is aimed at state exports support covering commercial and political risks under medium and long term export and financial loans. EXIAR also covers political risks for Russian investments abroad.
Fradkov announced that the three-year development strategy for EXIAR was approved by the agency’s board of directors and submitted to Vnesheconombank supervisory board for discussion. He reminded that EXIAR’s insurance operations volume is limited to 300 billion RUB by the relevant government resolution. The strategy has defined idustry and geographical priorities of these funds consumption.
”We have set ambitious goals. The main one is to provide cover for the whole Russian machinery export volume by the end of 2014. Since we understand that the entire financing limit of 300 billion RUB may be used by a few large companies rather fast, we have another restriction: the number of our customers should be no less than 3,300 and 3,000 of them should be SMEs,” said Fradkov.
16/03/2012 Andrey Beliyaninov: «Customs procedures within the Customs Union are maximally simplified»
Customs procedures within the Customs Union are maximally simplified, said Andrey Beliyaninov, Head of the Russian Federal Customs Service, during the press conference.
«Between Belorussia and Russia there is no borders, between Russia and Kazakhstan there is no customs border. Maximum simplification of customs procedures within the Customs Union area is now completed», - said Andrey Beliyaninov. In his opinion, the problem of improvement of customs procedures on the external border of The Customs Union, complied with the economic interests of all its participants, is now gaining more actuality. However, the Head of the Russian Federal Customs Service noted that The Customs Union countries border with other ex-Soviet brotherly states, and two of them, Kyrgyzstan and Tajikistan, have already expressed their wish to join the Union. Also Ukraine seems to be interested in joining the Union. «We are now working on simplification of such customs procedures. But this simplification doesn't mean the elimination of all procedures», - highlighted Andrey Beliyaninov.
15/03/2012 Russian government rushes to save the country from WTO
Russia hasn't become a member of WTO yet, but the country's government already rushes to save the economy from the WTO-joining effect.
Russia’s Economic Development Ministry plans to grant preferences to domestic producers under state procurement programs to compensate for their losses from lower import duties after Russia joins the WTO. These preferences are going to be quite significant – each state tender participant, providing domestic goods (made in Russia and Belorussia), gets a 15% preference of the deal amount. Moreover, the new government initiative applies to rather wide list of industries.
The list of products that will get special treatment include road construction machinery, pork, sugar, agricultural machinery, textile, leather and paper. Earlier the preferences affected only engineering, pharmaceutical, textile and animal breeding industries. The 15% preference applies now not only to Russian producers, but also to Belorussian companies. In this way the Economic Development Ministry shows its support to countries integration within the framework of the Customs Union between the three ex-Soviet states (Russia, Belarus and Kazakhstan). Kazakh companies will also enjoy the same preferences by 2014.
The whole amount of state procurement programs is estimated by tens of billions RUB. According to RBC daily, Andrey Chernogorov, Deputy CEO of United Electronic Market Place, states that over 40% of Russian economy are now somehow related to state-owned sector. Among these 40% of companies there are 70% of enterprises, for which state-owned sector is considered a structure-forming element. During 2011 on the United Electronic Market Place (one of the five existing state electronic market places) it was placed 17,766 lots with preferences and 14,657 out of them were closed.
After Russia joins the WTO this summer, it will have to lower the import duties, opening the door for cheaper imports.
14/03/2012 Stroykredit bank arranged credit line for Kostroma car components plant
600 million RUB credit line is opened for 3 years. The loan will finance the modernization of the enterprise.
Kostroma car components plant is one of the largest producers and suppliers of farm machinery and spare parts for truck and passenger car engines in the CIS region. The company operates under the «Motordetal» trademark. Kostroma car components plant together with the German group Kolbenshmidt are now carrying out modernization facility, which will enable the company to start production of pistons for Renault and Nissan engines.
13/03/2012 Vnesheconombank to provide 3.5 billion RUB to Nizhegorodsky engineering plant
State-owned Vnesheconombank will provide 3.5 billion RUB to Nizhegorodsky engineering plant (NMZ), a member of the group PVO Almaz-Antei. The loan will finance costs of company’s contractual obligations, informed NMZ press department.
Fixed interest of the deal equals 8.25%. The loan due date is 21 December 2017.
Financing will be provided by two tranches. The first will be arranged within the period between 13 March 2012 and 21 December 2012, while the second tranche will be provided within the period between 15 January 2013 and 21 December 2013.
Nizhegorodsky engineering plant is one of the largest Russian manufacturers of air defense, artillery and nuclear industry equipment.
Vnesheconombank's activity is regulated by federal law «On development bank». The Bank's purpose is to promote investments and improve the competitiveness and diversification of the Russian economy.
08/03/2012 Russian government will provide 49.7 billion RUB of state guarantees to North Caucasus Federal District in 2012
Russian government will provide about 49.7 billion RUB of state guarantees covering investment credits for the companies, working in the North Caucasus Federal District.
As media informed earlier, in 2011 the government spent 48.855 billion RUB in state guarantees for the same purpose. So the total volume of state guarantees will rise by 1.6% in the current year, and in 2011 this volume grew by 15%.
The companies of North Caucasus Federal District are planning to raise credit funds totalling 71.056 billion RUB covered by state guarantee.
Among these loans there is Vnesheconombank credit to pure polymer plant «Ethane», which is raising 10.8 billion RUB for 10 years covered by state guarantee up to 7.56 billion RUB. The goal of financing is construction of the plant which will produce polyethylene terephthalate for food and textile purposes. The capacity of the plant is estimated to be 486 thousand tons per year.
Chechenagroholding company is expecting to get Vnesheconombank's financing of about 1.307 billion RUB for 10 years covered by state guarantee of 915 million RUB this year.
Sberbank will provide a 9-year credit facility of about 4.046 billion RUB to In Aria company, covered by state guarantee of 2.832 billion RUB. Also the biggest Russian bank will finance Hydrometallurgical plant, providing 1.687 billion RUB covered by state guarantee of 1.181 billion RUB. Sberbank is considering one more credit to StavStal plant, the possible terms of the financing are 3.311 billion RUB for 8 years covered by state guarantee of 2.318 billion RUB. The bank can provide also a 10-year credit facility of 4.37 billion RUB for Agro-Com, with 3.059 billion RUB state guarantee covering. Artis company also can get from Sberbank 3.606 billion RUB funding to finance the construction of industrial cluster in Ingushetia, the credit facility will be covered by state guarantee totalling 3.524 billion RUB.
Russian Agricultural Bank can provide a 7-year loan of up to 6.992 billion RUB to Dagagrocomplex with 4.894 billion RUB covering by state guarantee. The bank also plans to arrange a 8-year 4.852 billion RUB loan for Dagfos company with 3.396 billion RUB state guarantee. Сonstruction materials plant ltd. will receive a 9-year credit facility of 3.288 billion RUB from Russian Agricultural Bank, the loan is covered by state guarantee of 2.302 billion RUB.
Research and production group «Escom» is expecting to get a 7-year loan of 4.227 billion RUB from Moscow Industrial Bank with 2.959 billion RUB state guarantee. The bank also can provide a 7-year credit facility of 3.082 billion RUB for Research and production association «Nalchiksky paper plant», the facility is covered by 2.157 billion RUB state guarantee.
Promsvyazbank will provide a 7-year credit facility of 3.257 billion RUB to Gelios ltd. for float line construction which will produce glass sheets with the capacity of 600 tons per day. The deal is covered by state guarantee of 2.28 billion RUB.
08/03/2012 China prepares to provide RMB loans to BRICS
China can start to provide RMB loans to the countries of BRICS group, reported Financial Times.
According to the journal, China Development Bank is expected to sign a memorandum of understanding with other BRICS countries (Brazil, Russia, India, South Africa). The document will be signed on 29 March during the BRICS summit in New Delhi.
Under the memorandum, China Development Bank will be able to provide RMB loans to subscribed countries. Formerly the bank provided foreign clients with USD loans as a rule.
The document also states that the other Brics nations’ development banks will also be able to extend loans denominated in their respective currencies.
Russian Vnesheconombank, Brazilian BNDES, Export-Import Bank of India and Development Bank of South Africa also will sign the memorandum of understanding.
Financial Times points out that this desicion will be able to promote the development of trade between BRICS countries and raise the role of RMB in international trade settlements.
Chinese Yuan (officially named renminbi, which means «people's currency») is neither a convertible currency, nor an international reserve currency.
However, Russia and China have been working on expansion of RMB and RUB share in bilateral payments for several years.
Russia and China removed the last trade restrictions in RUB and RMB settlements on 23 November 2010, having signed the protocol on amendments to the existing Russian-Chinese trade and economic cooperation agreement dated 5 March 1992. This agreement involved trade settlements between the parties in convertible currency. The extra protocol allowed the countries to carry out transactions in national currencies without any restrictions.
In the end of June 2011 the Central Bank of Russia and the People's Bank of China signed special agreement on settlements and payments in national currencies. This document allows settlements through Russian and Chinese banks not only in convertible currencies but also in RUB and RMB.
BRICS summit wll take place in New Delhi on 28-29 March 2012.
06/03/2012 Absolut Bank broadens its partnership with NTC Gradient
Absolut Bank provided 150 million RUB guarantee to NTC Gradient. 1 year guarantee will insure payment to the company's supplier, Beiersdorf (Nivea brand), and covers NTC Gradient commitments to pay for supplied goods.
Evgeny Retyunsky, Deputy Chairman of the Management Board, said that international instruments of trade finance, including bank guarantees, allow to reduce risks of the supplier, to increase the volume of purchased goods and lower the cost of financing for the customer. He added, that the bank is glad to expand its partnership with NTC Gradient on the field of international bank guarantees.
05/03/2012 China investment corporation to spend 30 billion USD on EU projects
China is planning to spend 30 billion USD on debt-stricken Europe, reports China Daily.
According to the words of Wang Jianxi, deputy general manager and chief risk officer of CIC, China Investment Corp, the nation's sovereign wealth fund, has received an injection of 30 billion USD from the State Administration of Foreign Exchange in the end of 2011.
Wang Jianxi explained that there are limited financial risks in purchasing on the heavily indebted European markets while financial assets are undervalued, and CIC would devote itself to investing in the region in the short term.
Experts said the new cash would give CIC the firepower to invest abroad, especially as Europe struggles with a debt crisis that has left many financial assets up for sale. "If the returns on our investment projects remain sound, we will apply to get (continued) injections from the government", said Wang. Wang also said, that CIC's new funds wouldn't be used to help other countries by buying their bonds.
During Angela Merkel's official visit to PRC in February, Premier Wen Jiabao said that China is willing to help Europe to solve its debt problems. Particularly the liders discussed the possibility of China's deeper participation in EU's struggle with debt crisis with the help of European Financial Stability Facility (EFSF) and European Stability Mechanism (ESM).
China investment corporation (CIC) was established in 2007 and is now managing assets amounting to 410 billion USD. THe corporation also is one of the largest independent investment funds in the world.
Earlier Lou Jiwei, Chairman & CEO of CIC, have already stated that CIC is interested in participation in infrastructure renovation projects in Britain. In January CIC bought 8.6% of Thames Water shares, the operator of London plumbing system.
Yang Jiechi, Chinese Minister of Foreign Affairs, marked that China has always been confident in Europe and euro. Yang Jiechi said during the annual session of the National People's Congress that China supported the euro and European financial stability in its own way, and is willing to continue investment in the region to achieve mutual benefit.
01/03/2012 Sinosure published the first short term export credit risk index
Sinosure officially published the first short term export credit risk index (ERI). This is the first try to analyze credit risks of the main trade partner countries and key sectors using ERI.
Sinosure held ERI calculations on 26 different countries (regions) and 10 sectors. Among these countries and sectors Japan, Saudi Arabia, Australia, Canada, Malaysia and UAE have the highest ERI. Sectors with the highest ERI are energetics, medicine, pharmacy, IT, production of furniture, textile and machinery. Short term export credit risks in the first quarter of 2012 are estimated to be stable.
24/02/2012 Gazprombank sets 6 billion RUB credit line limit for Sia International
Gazprombank has set 6 billion RUB credit line limit for pharmaceuticals distributor Sia International llc. for 3 years to finance current operation and documentation transactions.
Sia International company is one of the biggest Russian pharmaceuticals distributor. The main direction of its operation is the sale of the medicines, products of medical purpose and parapharmaceutical manufacture to the drugstores and hospitals of Russia. The company has more than 40 subsidiaries in 37 cities and towns of Russia.
Gazprombank enters the top of 5 greatest banks in Russia. The Bank's regional network amounts to 256 sales offices in 52 subjects of Russian Federation. Gazprombank has shares in the capital of 3 foreign banks: Belgazprombank (Belorussia), Areximbank (Armenia) and Gazprombank (Switzerland) in Zurich.
23/02/2012 Japanese banks are financing Visaginskaya NPP in Lithuania
Arvidas Sekmokas, Lithuanian Minister of Energy, stated that Japanese banks are supposed to provide credit on favourable terms for Visaginskaya NPP project. Lithuania along with other Baltic countries is going to build a new nuclear power plant in Visaginas not far from Ignalinskaya NPP which was shut down under the country’s commitments to EU on 31 December 2009.
During his working visit to Japan, Andryus Kubilyus, Prime Minister of Lithuania, had a meeting with the representatives of Hitachi corporation, а strategic investor of Visaginskaya NPP project, the Prime Minister also examined Advanced Boiling Water Reactor in operation. The delegation headed by Andryus Kubilyus had a meeting with Japanese government and business representatives as well.
”I've got confirmation of the meetings with Japanese financial institutions, which aknowledged again their financial participation in the project, and this is a very favourable credit for the country,” said Sekmokas, Lithuanian Minister of Energy, to Ziniu Radijаs radio station.
In the end of December 2011 Lithuanian government signed an agreement on the principal terms of concession contract with Japanese Hitachi corporation, which has been chosen as a strategic investor of Visaginskaya NPP project. This contract is going to be approved in February and submitted to Sejm for consideration during the spring session. Final version of documentation on the project is going to be approved by the Lithuanian government in the middle of 2012.
”We are now in the process of negotiations, so some information is considered confidential. I’ve already talked to the management of Visaginskaya NPP and they are going to make a press communication plan, in which all non-confidential information will be revealed to the President, Sejm members and Lithuanian community,” Sekmokas noted.
22/02/2012 Arab Spring caused bankruptcy of Russian largest fruits importer
JFC Group, the largest fruits importer in Russia, initiated bankruptcy process. The company filed for bankruptcy in Arbitration court of St. Petersburg and Leningrad region. JFC Group is planning to go into administration process and continue operations. Bankruptcy procedure is necessary for the company in order to protect the interests of its creditors who may start competition for debt recovery. Andrey Afanasiev, CEO of JFC Group said that the company has sufficient resources to continue the operations and plans to remain the leader of the Russian market.
As mentioned in the company press release, the JFC Group bankruptcy was caused by the aftermath of the number of revolutions in the Middle East called the Arab spring. JFC Group had been making about 30% of its sales in the southern Mediterranean countries. The unstable situation in the region resulted not only in the supplies disorder but also led to the disruption of business relations with fruits producers and the emergence of bad debts.
By the end of the third quarter of 2011 the company's liabilities amounted to 12 billion RUB. According to the information given by Vedomosti journal, JFC Group ows most of its debt to Sberbank (about 5 billion RUB) and Raiffeisenbank International (about 4 billion RUB). RBC daily journal reports that the company filed for bankruptcy to avoid the recovery of 50 million USD debt for 3 refrigerators leasing from Star Reefers Pool.
For more than 12 years JFC Group has been the leading supplier of bananas to the Russian market. According to Kommersant journal, the company annual sales estimated value is 600-650 million USD. Currently the company provides up to 40% of bananas consumed in the country.
21/02/2012 China aims at more than 30 new markets
Zhong Shan, Vice Minister of Commerce of PRC, stated that the main goal for China this year is development of new markets, especially markets of emerging countries. 30 target countries are already defined for now, among them there are countries with strong resource base, high population and relatively low volume of mutual trade with China. Short-term task of the country is 5% increase of the share of international trade on the new markets, apart from the European Community, the USA, Japan, Hong Kong and other traditionally important markets. It is evident, that entering new markets of emerging countries for China will allow both to solve export problems caused by recession in Europe and the USA, and also to ensure breakthrough for the country.
The purpose requires strengthening of political and financial support. Measures of such support will include China Exim Bank assistance, credit insurance agency collaboration and help from other financial institutions. Besides, it was decided to change the directions of financial support to SME (small and medium enterprises) to allow them to enter new markets. The amount of financial support for SMEs was increased by 20%.
The other way to reach the above-mentioned goal is enhancement of international sales network. Companies are motivated to establish their own exhibition centers, organize wholesale markets and retail sales networks in the target emerging countries, at their own expense or together with foreign partner, etc. At the same time it is necessary to work on increasing import by providing compensation for import, customs fees reduction etc.
17/02/2012 Probiznesbank increased guarantee limit of E4 Group to 1,6 billion RUB
Probiznesbank provided guarantees to E4 Group within the limit of the guarantee line for 2 reconstruction contracts: “Apatitskaya TPP Reconstruction and building of the heating mains to Kirovsk with the central heating unit mounting” and “Renovation of the boiler workshop №3 of Zhodinskaya TPP in Borisov with combined cycle gas turbine building”.
E4 Group acts as a general contractor under both above-mentioned projects. Objects reconstruction includes doing the construction work on a turnkey basis which involves E4 Group facilities participation.
E4 Group is an engineering company of complete cycle and a member of RU-COM Group. E4 Group includes more than 50 enterprises located in all federal districts. The company concluded more than 500 projects on 3 continents and in 23 countries of the world. Total orders portfolio of the company now exceeds 130 billion RUB.
Probiznesbank operates on the Russian market since 1993 and is the head bank of Life Financial Group. One of the main directions of development of the bank’s corporate department is providing guarantees to engineering companies specializing in construction of energy facilities.
14/02/2012 Nomos-Bank issued 70 mln RUB guarantee to Servico company
Nomos-Bank Irkutsk subsidiary has recently issued 70 mln RUB guarantee to Servico, one of the greatest distribution and logistics companies in East Siberian region of Russia. Companies use a bank guarantee as an insurance of fulfillment of payment commitments for supplied goods.
Nomos-Bank cooperation with Servico company started in April 2008. Today company credit line limit in the bank totals 467,5 million RUB, including 140 million RUB in bank guarantees. Nomos-Bank provided guarantees to Servico company and other companies representing its interests (Servico ltd., More piva ltd., Fenix plus ltd.) to insure fulfillment of the companies’ payment commitments for goods supplied by Pivovarnya Moskva-Efes llc., SABMiller RUS ltd., Vostochniy Division ltd., Tomskoe pivo pc., Coca-Cola HBC Evrasia ltd.
Being a regular customer of Nomos-Bank, Servico company also uses such credit products as overdraft and revolving credit lines. The bank provides comprehensive service for Servico Group and opened several accounts for companies of the group in Irkutsk, Bratsk, Krasnokamensk and Krasnoyarsk.
Servico ltd. was founded in September 1993. During 6 years from its foundation the company was an authorized distributor of Irkutskpisheprom llc., selling Irkutsk beer only.
Today Servico ltd. is a company with wide range of products (about 6000 titles) and this range is constantly getting even wider. The company now sells products of such famous brands as Sady Pridoniya, Russkart, Lebedyanskiy, Golden Eagle, Sukhogruz, Sladco, Makheev, Mr. Ricco. Servico company cooperates with such greatest Russian beer manufacturers as SAB Miller Rus, Pivovarnya Moskva-Efes, Moskovskiy pivobezalkogolniy kombinat Ochakovo, Alko, Alkon.
All the companies representing the interests of Servico provide the products delivery through corporate logistics facilities to Irkutsk and Irkutsk region, Bratsk, Ulan-Ude, Republic of Buryatia, Chita and Chita region, Krasnoyarsk and Krasnoyarsk region.
Servico group includes 3 enterprises with license for the sale of alcoholic beverages (More piva ltd. in Irkutsk and Irkutsk region, Servico+ ltd. in Chita and Fenix+ ltd. in Ulan-Ude).
Servico-Avto ltd. provides logistics services. Every vehicle of the company is equipped with satellite navigation system that allows positioning and tracking of each vehicle movement on-line.
Servico company has almost the widest fully mechanized storage facilities in East Siberian region that equal more than 37000 square meters.
Servico ltd. operates throughout Irkutsk and Chita regions, Republic of Buryatia and Krasnoyarsk region and enters the top 100 of the largest companies in Irkutsk region.
14/02/2012 Factoring volume in alcoholic beverages sector has reached 21 billion RUB in 2011
”Russian alcoholic beverages market participants received 21 billion RUB financing from native factoring companies in 2011, with financing volume growth in 16,6%,” reported Dmitry Shevchenko, Managing director of Association of factoring companies. ”However, the projected rise in financing should have been much higher and amount to 41 billion RUB.”
Shevchenko also informed that, during the first half-year factoring companies provided 13,5 billion RUB to the alcoholic beverages market players, in the other half of the year factoring financing on the market reduced to 7,5 billion RUB, although it is this period that considered the most intense and the estimated volume of financing should have been around 27,5 billion RUB.
”This money could have increased the turnover of distilleries, raw suppliers and distributors,” he said.
As Shevchenko pointed out, the recession in the volume of factoring services, that allow to receive short-term financing immediately after goods are supplied to the customer, is connected with amendments to Federal Law on government regulation of ethanol and alcoholic beverages production and turnover. These amendments prohibit the concession procedure, on which factoring service is actually based. However, this requirement can be interpreted in two ways, eventually that resulted in the fact that about a half of market retailers ceased cooperation with their alcohol suppliers on factoring conditions.
”All the manufacturers are highly indebted, overloaded with credit obligations, they are trying to keep the balance, and distributors have nothing to pawn to bank. That is why there's only one choice for them: factoring. But it was taken away from them”, explained Shevchenko. Legislative authorities are aware of the problem. Victor Zvagelskiy, member of State Duma from Edinaya Rossiya party, informed that the problem of excluding factoring from alcohol sector financing scheme will be tried to solve by the Legislative Assembly after adjusting current Federal law during 1,5-2 months.
13/02/2012 HSBC Russia issued the first import letter of credit in RMB
Since the end of January HSBC Russia has launched a new service of LC (letter of credit) in Chinese Yuan. The first Russian company to use the service was Ostin, a subsidiary of Sportmaster Group.
As it was noticed bу the bank representatives, such product allows companies to settle better terms of payment under international contracts. Moreover, trade settlements in Yuan reduce supplier currency risks related to currency fluctuations.
Karel Bures, Head of Commercial Banking, HSBC Russia, said: “Letter of credit in Chinese Yuan offers new benefits for Russian companies and allows them to strengthen and deepen mutual relationships with their Chinese counterparts. In view of significant growth in demand for Chinese Yuan we see increasing demand for Yuan-denominated letter of credit as a method of payment under international contracts.”
Dmitry Barkov, Head of Corporate Finance Department, Sportmaster Group, points out that they selected HSBC Russia for conducting international settlements primarily due to a prompt letter of credit arrangement. “It normally takes from 3 days to 2 weeks on average, while with HSBC it takes one working day only,” he said. “Moreover, Chinese suppliers tend to give preference to counterparties with settlements in Yuan and our company gets a competitive advantage in this region by using letter of credit in Yuan. Finally, HSBC’s brand enjoys special trust and confidence across Asian markets – practically there has never been a single request from a supplier to confirm letter of credit issued by HSBC.”
HSBC announced its first cross-border renminbi (RMB) trade settlement transaction in Russia for a subsidiary of «Sportmaster» in December 2010.
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