Asian-Pacific Bank

International Financing of Export-Import Operations

2013
International business

■ Participation of the International Finance Corporation (division of the World Bank) and Swedish
asset management company East Capital Financials Fund in the Bank’s capital as well as its
spectacular 8-year growth ensure confidence of western banks in APB.

■ Long term bank deposit rating assigned by one of the leading rating agencies Moody’s Investor
Services (B2 international scale, Baa1.ru national scale, stable outlook) is a prerequisite for the
Bank’s access to the resources of the international money market.

■ Accreditation with EBRD and IFC significantly expands the range of banks providing guarantees
and financial resources to Asian-Pacific Bank.

■ Cooperation with the largest banks in Europe, the USA, Japan, Korea and China allows Asian-
Pacific Bank to use their networks all over the world.

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Partner banks

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Trade Finance Operations

■ Develop favorable conditions for international trade, ensure timely

payments and delivery of goods.

■ Have positive effect on the reputation of Russian participants and help to

sign new contracts on more favorable terms.

■ Strengthen clients’ positions in the Bank.

■ Ensure access to cheaper financial resources of international money

market.

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 International finance product offering

Short-term (up to 3 years) financing of import operations

■ Documentary letters of credit with deferred payment or with acceptance of time drafts.
■ Documentary letters of credit confirmed by international banks, available upon presentation of documents with post-
financing.
■ Payment guarantees of international banks and standby letters of credit.
■ Loans to importers funded by trade-related international borrowings.

Short-term financing of export operations

■ Pre-export financing funded by trade-related international borrowings.

■ Tender guarantees, performance guarantees, advance payment guarantees.

Medium-term (>3 years) and long-term (up to 7 years) financing

■ Arranging medium- and long-term financing of import contracts for purchase of equipment or construction contracts through loans
from international banks guaranteed by export credit agencies.

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APB for importers: letters of credit with post financing

• Financing of import transactions up to 3 years at favourable rates

Purpose
• Minimizing the risk of suppliers’ contractual obligations breaches

• Documentary letter of credit with post-financing (deferred payment) confirmed by a

Instrument foreign bank

• Foreign trade contract

Conditions • Creditworthiness of an importer
• Min amount is USD 50 ths or equivalent

• Fee for confirmation of the letter of credit: international bank’s fee+ APB margin
(calculated from the date of the letter of credit and up to the date of payment to the
Pricing exporter)
• Fee for post-financing: Libor/Euribor + international bank’s fee + APB margin
(calculated from the date of payment to the exporter to the end of post-financing)

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APB for importers: letter of credit with post financing

On behalf of a client Asian-Pacific Bank issues a letter of credit confirmed by a

financing foreign bank.

Payment for the goods shipped is made by the financing bank against documents
specified in the letter of credit. The documents are checked for compliance with the
terms of the letter of credit to guarantee the importer fulfillment of the conditions of
delivery, and the exporter - accurate and timely payment for the goods shipped.

Financing bank pays the documents at sight granting credit to APB. The same credit is
provided by APB to the importer.

Price for the client: Libor/Euribor www.global-rates.com

+ 5-8% p.a. depending on maturity and country of exporter

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APB for importers: standby letter of credit/guarantee of payment

• Guarantee of payment for imported goods and services when foreign trade contracts
Purpose
provide for seller’s credit

• Standby letter of credit confirmed by a foreign bank. Guarantee of payment issued

Instruments by a foreign bank against APB’s guarantee

Conditions • Sufficient creditworthiness of an importer

• Standby letter of credit: international bank’s fee + APB’s margin

Pricing
• Guarantee: international bank’s issuance fee + APB’s margin

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APB for importers: standby letter of credit/guarantee of payment

Foreign supplier agrees to grant a credit for the delivered goods, but
requires the importer to provide a bank guarantee of payment

APB issues standby letters of credit confirmed by major international

banks in favor of foreign contractors of the Bank’s clients. APB
arranges guarantees of international banks to foreign beneficiaries.

Standby letter of credit has the same function as guarantee of payment.

Important advantages of standby letters of credit are that the
majority of them are subjected to internationally recognized practices
UCP600 or ISP98.

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Pre-export and post-import financing

• Up to 3 year financing for Russian participants of foreign trade

Purpose
in USD, EUR and RUB

Instrument • Trade-related interbank loan from an international bank

• Foreign trade contract

Conditions • Creditworthiness of a client
• Min amount is USD 50 ths (equivalent in EUR) or RUB 10
mln

• Fee for trade-related financing: Libor/Euribor/Mosprime +

Pricing
Foreign bank’s fee + APB’s margin.

• APB and an international bank enter into loan agreement.

Implementation International bank grants APB a loan with a maturity up to 3
years and APB grants a loan to its client with the same
maturity.

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APB: Financing of long-term contracts

• Financing of medium and long-term projects (up to 7 years) related to

import of equipment and services funded by international banks with a
Purpose guarantee provided by national export credit agencies (ECA)
• Minimizing the risk of suppliers contractual obligations breaches

• Documentary letter of credit + credit agreement with an international bank

Instrument under ECA insurance

• Foreign trade contract

Conditions • Creditworthiness of an importer
• Min amount is USD 500 ths or equivalent

• International bank fees

• Cost of financing: Libor/Euribor + international bank’s margin + APB’s
Pricing margin
• Insurance premium of ECA (3-6% of amount of financing provided
depending on amount and country)

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APB: Financing of long-term contracts

• Asian-Pacific Bank and an international bank sign an agreement for a

project financing. The project is financed under guarantee of ECA from
exporter’s country.
• Advance payment 15% of the amount of the contract (necessary condition
for cooperation with ECA) may also be financed by a foreign bank.
• Exporter receives its export revenue upon shipment or execution of project.
Payment is made under the letter of credit issued by APB in favor of the
exporter
• Importer receives financing for up to 7 years. Repayment of the importer’s
debt is made in equal semi-annual payments

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Trade finance in Asian-Pacific Bank: advantages

■ Participation of International Finance Corporation in the Bank’s capital allows the Bank
to access cheaper international market resources.
■ Price for international funding is significantly lower than foreign currency financing in
domestic market (on average 2-3%p.a. less).
■ International financing with participation of export credit agencies is available for the
term of up to 7 years.
■ APB operational centers in Blagoveschensk and Moscow allow clients and foreign
partners to have full access to the Bank’s managers and systems 14 hours a day.
■ Being heavily exposed to China and other Asian countries business the Bank is
committed to strengthen its business presence in the region
■ Highly qualified specialists of the Bank provide free consultations at all stages of
financing.

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 Contacts Bank’s details
Yury Kasyanenko INN: 2801023444
11/1 Voznesensky per., Moscow, 125009 KPP: 280101001
Tel. +7 (495) 988-30-61 ext. 1072
Mobile +7 (919) 993-96-40
Correspondent account: 30101810300000000765 with GRKC
kasyanenko@atb.su GU of Bank of Russia for Amur Region

Vera Mitinenko BIC: 041012765

225, Amurskaya str. , Balgoveschensk, Amur region, 675000
License No 1810
Tel. +7 (4162) 222-344 ext 203
Mobile +7 909 817 8213
mitinenko_vn@atb.su

Blagoveschensk office
225, Amurskaya str. , Blagoveschensk, Amur region, 675000
Tel: +7 (4162) 220-402, 220-406;

Moscow office
11/1 Voznesensky per., Moscow, 125009
Tel. +7 (495) 988-30-61

www.atb.su, http://eng.atb.su/

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