Export support framework
To enhance its performance in promoting national exports, Vnesheconombank applies a comprehensive approach that provides for expanding and improving the mechanisms of support to Russian manufacturers. In 2013, Vnesheconombank’s priorities in export support were as follows:
- build up the export finance portfolio and the number of supported exporters;
- expand lending to foreign buyers of Russian high-tech products;
- enhance the efficiency of export finance business processes;
- set up an integrated framework for Vnesheconombank Group’s support to exports.
In 2013, Vnesheconombank was actively building up its financial support to Russian industrial exports. During the year, the Bank’s export loan portfolio grew by more than 1.5 times to RUB 22.3 bn as of the year-end. The portfolio of guarantees issued by Vnesheconombank to support exports more than doubled over the year to reach RUB 99.6 bn.
By the end of 2013, the overall export financing portfolio of Vnesheconombank attained RUB 122.1 bn. The amount of all contracts supported by the Bank totalled RUB 663.3 bn, including RUB 491.9 bn of new contracts that were supported in 2013.
As of late 2013, Vnesheconombank’s portfolio included 161 bank guarantees and 17 export loan agreements. During the year, the Bank approved the financing of 7 export projects for a total exceeding RUB 112 bn. Support was provided to 32 companies.
In 2013, the Bank also set up an automated inquiry service for inquiries on key export support topics on Vnesheconombank’s web-site to provide comprehensive information and advisory services to Russian exporters on a “one stop shop” basis.
Export finance portfolio (RUB bn)
Vnesheconombank’s export finance portfolio broken down by country importing Russian goods and services as of 31 December 2013
Export support framework in Vnesheconombank Group
Initiator: OJSC Sukhoi Civil Aircraft
In 2013, Vnesheconombank’s management made a decision to participate in syndicated loans for up to USD 32.1 mn to finance the delivery of 5 Sukhoi Superjet 100 passenger aircraft made by OJSC Sukhoi Civil Aircraft to the end customer, ABC Aerolíneas S.A. de C.V. (Mexican United States). The shipment of Sukhoi Superjet 100 aircraft to Mexico is financed under the tripartite agreement between Vnesheconombank and Coface and SACE export credit agencies of June 2011. The agreement provides for building an integrated system of financing international sales of Sukhoi Superjet 100 using a loan and lease mechanism of financing aircraft exports to foreign buyers. Under the terms of the agreement, insurance coverage will be provided to foreign banks involved in export financing by SACE and Coface agencies.
The exports are financed in the amount equal to 80% of their cost, with Vnesheconombank’s commitment accounting for one third of the total amount of financing. In 2013, Vnesheconombank already allocated USD 6.4 mn to finance exports of Sukhoi Superjet 100 to the Mexican United States.
The most ambitious projects of Vnesheconombank related to the financing of Sukhoi Superjet 100 aircraft exports include the loan agreement with the Indonesian Ministry of Finance for USD 394.3 mn in favour of the Indonesian party.
“For us, the financing of Sukhoi Superjet 100 aircraft exports to Mexico and Indonesia is an important step towards a framework of financial support to exports within Vnesheconombank Group. This is a priority area for the Bank and we are happy to demonstrate both to Russian exporters and to foreign importers that we are committed to efficient cooperation.”
Deputy Chairman Management Board Member Vnesheconombank
The mechanisms used by Vnesheconombank to finance the contracts for export of Sukhoi Superjet 100 airliners showed a fundamental breakthrough in the Bank’s financial policy as the Bank was able to offer foreign buyers and domestic sellers a broad range of financial instruments. They include loans and a guarantee package by Vnesheconombank, insurance coverage of export risks provided by EXIAR and lease products of VEB-LEASING, the Bank’s subsidiary.