SF Export Credit

Structured Trade Finance (“STF”) is a tool for financing companies in developing countries with the use of guarantees and/or subventions from:

• Export Credit Agencies ("ECA") (e.g. U.S. Exim, Hermes, COFACE)
• International Agencies (e.g. IFC, ADB),
• Bilateral Agencies (e.g. OPIC, FMO, CDC),
• Insurers (e.g. AIG, CapMac).

The minimum amount of financing is US$20 million.

Benefits

• possibility to finance investment imports for companies with elevated investment risk (borrower risk is reduced by a guarantee or an insurance policy from an ECA)
• favorable terms and conditions may be offered for financing for more than 5 years
• option to increase the transaction volume
• lower interest rate and fees reduce the cost of financing
• highly flexible credit repayments

Additional information

STF is provided as a long-term loan, usually as a syndicated facility, with the use of guarantees/subventions from Export Credit Agencies (ECAs). ECAs are governmental agencies the mission of which is to support/promote imports from OECD countries. They ensure financing for imports of fixed assets and capital expenditures.

ECAs may guarantee the repayment of a borrower’s liabilities (principal and interest) and also insure a project against country risk. ECAs may cover up to 85% of imported equipment (transaction).

STF is dedicated to companies intending to make capital investments or buy fixed assets.