EXIAR insures Novikombank’s financing of asphalt deliveries by Energo-Oil to Tajikistan
The Russian Agency for Export Credit and Investment Insurance (EXIAR) and Novikombank have signed a confirmed letter of credit insurance contract for the payment of supplies of Russian-produced asphaltic bitumen to Tajikistan.
Novikombank was the confirming and financing bank for the letter of credit of USD 390,000, issued by Tojiksodirotbank (Tajikistan) for use by Energo-Oil (Russia) on behalf of Sangi Daryo (Tajikistan). As part of the transaction, EXIAR provided insurance to cover against the risk of non-payment due to commercial and/or political reasons from the issuing bank under a letter of credit.
The completion of this transaction using EXIAR's modern financial support mechanisms for Russian exports will help strengthen relations and increase trade turnover between the two countries. In addition, it testifies to the efficiency of the comprehensive financing and support system available to Russian exports.
Using the Agency's coverage, Novikombank became a leading financer of Russian exports to the CIS in 2013. The total volume of credits extended to banks or direct buyers of Russian products based in neighbouring countries exceeded USD 70 million.
According to EXIAR CEO Peter Fradkov, banks’ targeted financing of Russian shipments abroad, insured by the agency, has a direct impact on the development of the country’s manufacturing sector and enhances its export potential. Such joint projects between EXIAR and Novikombank are both beneficial and hold great promise for the future.
"The use of EXIAR’s innovative products reduces the cost of resources, extends the time frame for loans, and most importantly, finances banks in the CIS without utilising country and individual limits for financial institutions. Our portfolio already includes deals with banks from Belarus, Ukraine, Tajikistan and Uzbekistan", said Elena Shirinskaya, Deputy CEO of Novikombank.
Novikombank was established in 1993. Rostec State Corporation owns 17.6% of the bank's charter capital. Novikombank specialises in banking services across all segments of the financial market. The bank’s chief priority is the financing of the real sector. Novikombank’s customers include the country’s leading high-tech, engineering, and automotive companies. The bank’s corporate loan portfolio is in excess of RUB 92 billion. As at 1 January 2014, its capital amounted to RUB 20 billion, with assets of RUB 170 billion. Novikombank is successfully developing the Bank for Banks Programme and is a base bank of the CIS and the Customs Union.
Tojiksodirotbank, established on 20 March 1992, is a universal bank offering the full range of services to individuals and legal entities. It maintains a stronghold in key segments of the financial market, accounting for about 23% of the total capital, 24% of the assets and about 23% of the deposits of Tajikistan’s 16 banks. Tojiksodirotbank’s credit investments account for over 25% of the credit investments of all of Tajikistan’s banks combined. The bank is working to improve the structure and quality of its credit portfolio, diversifying assets by economic sectors, categories of borrowers, and areas of business.
The Russian Agency for Export Credit and Investment Insurance (EXIAR) was established in 2011 as an open joint-stock company. EXIAR’s mission is to support Russian high-tech exports by insuring export credits against commercial and political risks, as well as Russian investments abroad against political risks.Vnesheconombank is the sole shareholder of EXIAR. The agency's charter capital is RUB 30 billion.
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