Novikombank completes first transaction to provide a targeted interbank loan to Belarusbank together with EXIAR
The Russian Agency for Export Credit and Investment Insurance (EXIAR) and Novikombank have signed an agreement to insure a targeted interbank loan to Belarusbank against commercial and political risks. The decision was approved by the EXIAR Board of Directors on 24 March 2014.
Novikombank used the Buyer’s Bank Credit product for the first time to finance Russian exports with EXIAR’s insurance.
In accordance with the terms of the deal, the USD 10 million loan will be allocated to Minsk Automobile Plant – the management company of BelavtoMAZ – to acquire diesel engines manufactured by Avtodiesel (GAZ Group).
The project takes advantage of advanced financial mechanisms that the Agency employs to support Russian exports, and further promotes the commodity turnover and strengthens trade relations between the two countries.
"Using EXIAR'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 totalled more than USD 70 million", said Elena Shirinskaya, Deputy CEO of Novikombank. "We are planning to further develop our collaboration with EXIAR to promote Russian products in foreign markets."
EXIAR CEO Peter Fradkov expressed his satisfaction with the increase in transactions with Novikombank in its insurance portfolio, and noted that the diversification of insurance products within this bilateral partnership has created a solid foundation for further increase in the number of joint projects and, consequently, additional exports of Russian products enjoying support.
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.
Belarusbank is Belarus’ largest full-service financial and credit institution. The bank offers a comprehensive range of services and products, and operates a broad network of branches. As at 1 February 2014, its regulatory capital was RUB 2.251 billion, with a charter capital of USD 1.732 billion and a resource base of USD 16.598 billion. The Banker named Belarusbank the country’s number one bank in terms of tier 1 capital.
Avtodiesel (Yaroslavl Engine Plant) is a leading Russian producer of multi-purpose diesel engines, clutches and gear units. Yaroslavl engines are used to power commercial vehicles, buses, line-haul trains, dump trucks, and aircraft tow tractors, combine harvesters, timber trucks, excavators, and more. Avtodiesel is part of GAZ Group, Russia’s largest manufacturer of commercial vehicles. GAZ Group produces light and medium duty commercial vehicles, buses, lorries, power units and automotive components. GAZ Group incorporates 13 companies in eight Russian regions. It is the country’s leading manufacturer of commercial vehicles, accounting for more than 50% of the market for light commercial vehicles, and about 65% of the bus market. The key shareholder is the Russian Machines engineering holding, which is part of Basic Element. GAZ Group is headquartered in Nizhny Novgorod.
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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