Projects with a Russian component funded by the Roseksimbank

Purpose of loan

                   

Funding to cover the Export contract (contracts) payment for the supply of goods, provision of services or performance of work signed between the Russian Exporter (Russian Exporters) with the Customer (Customers) from the Kyrgyz Republic*.

The loan is provided for the purchase, renewal and modernization of fixed assets, as well as operation assets for non-primary product and services funding **.

Refinancing of loans with the RKDF funds (for this Loan product) is not allowed.

* Information on the possibility of the Export Contract funding is available at the following link: http://www.eximbank.ru/credits/product.php

** Information on the classification of primary and non-primary goods is available at the following

link:        https://www.exportcenter.ru/international_markets/classification/

Target borrowers

Small and medium-sized businesses (hereinafter referred to as SMEs) funded in the framework of the RKDF target-oriented programs through partner banks.

Partner Banks

Commercial banks of the Kyrgyz Republic that meet the criteria specified in the Regulation "On targeted funding of commercial banks by the RKDF”.

A commercial bank fully assumes the SMEs loans non-repayment risk.

Loan type

Loan/Loan Facility

Loan currency

Russian ruble, US dollar, Euro

Loan amount for the borrowers

Up to 1,000,000 US dollars or an equivalent amount in rubles, euros

Loan term

Installed individually by agreement with RosEksimBank, based on the parameters and conditions of a particular transaction.

Maximum terms:

  • the purchase, renewal and modernization of fixed assets - 5 years;
  • trade turnover funding- 2 years.

Following RosEksimBank no-objection, it is possible to have a deferral for the loan principal repayment (depending on the industry), but no more than 12 months.

Loan arrangement

In tranches based on the individual loan agreements.

Loan review and arrangement mechanism

1. The Partner Bank accepts a project application (with Russian component) from the Borrower with an Export Contract attached;

2. The Partner Bank submits to the RKDF the Borrower documents including the information about the planned loan and the Export Contract;

3. The RKDF agrees the funding terms with RosEksimBank and informr the Partner Bank;

4. Following a favorable decision, the RKDF signs a loan agreement with the Partner Bank in the framework of target funding of the projects with a Russian component;

5. The RKDF signs an individual loan agreement with RoseksimBank.

Interest rate of the Partner Bank for the Borrower

  • in Russian rubles (RUB) - from 11% per annum;
  • in US dollars (USD) - from LIBOR 1 + 3.75% per annum;
  • in Euro (EUR) - from EURIBOR 2 + 3.75% per annum.

The interest rate is set individually in agreement with RosEksimBank for each currency (USD, EUR and RUB), based on the parameters and conditions of a particular transaction and market performance.

In case of the interest rate modification, the RKDF notifies the Partner Bank in writing (according to the loan agreement terms).

For CFI, these funds are provided within the established limits under the SMEs target-funding program.

Fee

The Borrower pays a fee for opening a loan facility and the lending commitment charge (for the undisbursed part of the loan facility).

The fee amount is determined based on the RosEksimBank requirements individually, based on the parameters and conditions of a specific Export Contract.

Miscellaneous

The share of the Russian component (the cost of raw materials, component parts, works and services produced on the territory of the Russian Federation) in the total value of the Export Contract must be at least 30%.

Collateral security for a Partner Bank

According to the requirements of a Commercial Bank.

In case of insufficiency of the collateral, it is possible to provide guarantees from the Guarantee Fund OJSC.

Borrower own contribution

The SME must provide its own contribution in the amount of at least 15% of the project cost. Own contribution can be expressed in monetary items or assets involved in the project implementation (project for which a loan is requested).

Loan and interest repayment by the Borrower

Individual, seasonal repayment schedule in accordance with the requirements of the Commercial Bank and the financial condition of the Borrower.

Early loan repayment

Following the prior notification of a Commercial Bank at least 15 (fifteen) business days in advance, considering the provisions of the individual loan agreement the Borrower has the right to repay the entire loan or any part of it ahead of payment schedule. In doing so, the Borrower is obliged, together with the loan principal subjected to early repayment, to pay the interest for an early repayable principal amount, as well as to pay the RKDF an early repayment commission in the amount of 0.1% (one percent) of the early repayable amount.

Loan disbursement monitoring

The RKDF has the right to monitor the fulfillment of obligations by the Borrower in accordance with the requirements of the RKDF internal regulatory documents.

Prohibited practices:

The RKDF has the right to monitor the fulfillment of obligations by the Borrower in accordance with the requirements of the RKDF internal regulatory documents.

1.  loan funds cannot be used for the purpose of financing, or can be interpreted as being used to finance trade in military equipment or weapons, or are involved in the illegal drug or other illicit substances trafficking in accordance with the legislation of the Russian Federation and the Kyrgyz Republic;

2.  loan funds cannot be used to finance, directly or indirectly, any activity that is otherwise illegal in accordance with the legislation of the Russian Federation and the Kyrgyz Republic;

3.  child and forced labor;

4.  production and distribution of tobacco and alcoholic products;

5.  gambling business;

6.  manufacture of weapons and military equipment;

7.  exchange transactions with foreign currency in cash;

8.  investments in any securities;

 

1 Libor (Eng. London Interbank Offered Rate) the weighted average interest rate on interbank loans provided by banks operating in the London interbank market with the offer of funds in different currencies and for different periods - from one day to 12 months - http://www.global-rates.com;

2 Euribor (Eng. European Interbank Offered Rate) — average interest rate on interbank loans granted in euros - http://www.euribor-rates.eu