SF Export Credit
Flexible credit repayment
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.
- 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
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.