RU
2

Principal Activities of the Bank’s Activities

81.1 billion rubles
is the amount of funding provided in the framework of export support in 2018
Priority directions for the Bank are:
  • credit and guarantee support
  • operations in financial markets
  • correspondent relations

The Bank showed a high diversification of the export support both by various industries and regions.

Figure 1
Structure of the Credit Guarantee Support by Macro-Regions
10%20%30%40%50%CISWesternEuropeAsiaLatinAmericaAfricaEasternEurope
Figure 2
Structure of the Credit Guarantee Support for 2018 by Macro-Sectors
MetalproductsEngineeringproductsChemicalproductsVarious industrialproductsFoodFuelServices andworksOther15%30%45%60%

The goals developed and approved for 2018 were successfully achieved by the Bank, which was confirmed by the high level of customer satisfaction of the company, and also allowed EXIMBANK OF RUSSIA to set new and more ambitious goals for the further development of the financial support for all Russian non-resource exports in 2019.

In order to perform the objectives for 2019, the Bank plans to promote the products approved at the end of 2018 and develop new products for the SME segment as a part of the credit and guarantee support for the exporters.

2.1

Credit Support

In 2018, the Bank's product range was represented by a set of financial instruments demanded by the participants in the export transactions, which included new products of the guarantee support and export factoring.

The financing is provided to the exporters of the Russian products, works or services, Russian manufacturers, who export the products through their trading houses abroad or agents to the foreign buyers of the Russian products, foreign financial institutions in order to finance the agreements for the purchase of the Russian products, work or services.

The Bank's range of credit products is designed to provide any support to various exporters at all stages of the performance of the export contracts.

Thus, the proposals for the financing of the exporters of the Russian products and services were prepared through various product groups of the pre-export and post-export financing, export factoring, and the repurchase of the bonds of the exporters. The exporters have the opportunity to confirm and discount any letters of credit issued in their favor by foreign banks.

The financing of the Buyer is possible in the form of a direct credit to the foreign buyer, payments through any confirmed letter of credit, as well as the loan to the foreign buyer’s bank, including the bank’s participation in syndicated credits.

The growth in the volume of services provided also increased the recognition of EXIMBANK OF RUSSIA both in the Russia Federation and abroad (in particular, in the regions, such as the CIS, Asia, Latin America and Eastern Europe).

Thanks to the experience gained in the previous years in the sale of products and the insurance support of EXIAR, JSC, the Bank implemented large projects in the industries, such as:

  • Transport engineering,
  • Metallurgy,
  • Power engineering,
  • Chemical industry,
  • Agriculture,
  • Other segments of industry and services.
2.2

Guarantee Support

EXIMBANK OF RUSSIA offers a full guarantee support for all exporting enterprises.

In 2018, EXIMBANK OF RUSSIA provided the guarantee support to the Russian exporters to conclude the export agreement and further perform its obligations hereunder, as well as to the foreign buyers in order to ensure the proper compliance with the terms and conditions of the agreements with the Russian exporters.

The transactions were made to provide any direct guarantees of the Bank against the counter guarantees of the Russian and foreign banks according to the limits set for them.

In 2018, the Bank significantly expanded the customer base of the companies using the guarantee support. The guarantee support was provided both to the enterprises, which are the SME entities, and the large exporters included in the segment of the export champions in the priority sectors for the REC Group.

The guarantee support was provided to the enterprises performing the export agreements in the following sectors: aircraft industry, machine building industry, nuclear industry, metallurgy industry, light industry, and chemical industry.

In 2018, the geography of the guarantee support also expanded. In addition to the countries that are traditional for any export, such as the CIS member states, Egypt, and Cuba, the relevant guarantees were provided as a part of the export projects in Turkey, China, Bangladesh, Pakistan, and Slovakia.

In 2019, the main objective of the guarantee area will be to increase the volume of all supported exports and increase the number of the exporters, which used the guarantee products through the introduction of new products, as well as by increasing the efficiency of existing business processes.

2.3

Acting as the Agent of the Government of the Russian Federation

In 2018, EXIMBANK OF RUSSIA according to the Federal Law No. 362-FZ “On the Federal Budget for 2018 and for the Planning Period of 2019 and 2020” dated December 5, 2017 continued to act as the agent of the Government of the Russian Federation on the issues of providing the state guarantee support for industrial exports products (except for the issues regarding the provision and performance of the state guarantees of the Russian Federation).

According to the Agreement No. 01-01-06/04-267 on the performance of the functions of the agent of the Government of the Russian Federation (including any additional agreements thereto) and the rules for the provision of the state guarantees of the Russian Federation in the foreign currency to provide the state support for the export of any industrial products (goods, works, services) approved by the Decree of the Government of the Russian Federation No. 803 dated November 1, 2008, EXIMBANK OF RUSSIA assigned the functions of providing own opinions during the consideration of the issues on the possibility of providing the state guarantees to support the export of the industrial products, as well as the control over the targeted use of the funds on all credits secured by the state guarantees, and the performance of the obligations under the relevant export agreements.

According to the Federal Law No. 459-FZ “On the Federal Budget for 2019 and for the Planning Period of 2020 and 2021” dated November 29, 2018, the agent service of the bank from January 1 of this year was transferred to the State-Owned Development Corporation VEB.RF.

2.4

Transactions in the Financial Markets

In 2018, EXIMBANK OF RUSSIA continued to increase the number of counterparty banks for the cooperation in the treasury market. The framework agreements were concluded for different credit, conversion and repurchase transactions with the key participants in the Russian interbank market. In 2018, on the part of counterparties, with respect to EXIMBANK OF RUSSIA, the volume of open limits on the interbank market increased by more than RUB 15 bln. The Bank of Russia established a limit of RUB 25 bln for EXIMBANK OF RUSSIA for secured financing.

The volume of transactions in the interbank market grew by 33%, while the number of transactions increased by 30%. Separately, it is worth noting the increase in the volume of conversion transactions with the currencies, such as CHF, GBP, HUF, BYN, and KGS. The volume of deposits placed by the corporate customers increased by 45%.

In December 2018, EXIMBANK OF RUSSIA successfully passed the offer for the first bond issuance in 2016 in USD with the relevant settlements in RUB amounted to USD 150,000,000. The coupon rate for the next 2 (two) year period before the offer was set at 6.50% per annum. According to the results of the offer, the owners of the bonds presented the bonds for the purchase by EXIMBANK OF RUSSIA, which comprise 46% of their issue. The bonds purchased at the request of the owners within 1 (one) day were again put into circulation on the secondary market. The foreign currency bonds of EXIMBANK OF RUSSIA are included in the list of bonds for the subsequent repurchase with the Central Counterparty by Moscow Exchange.

In the case of any shortage in the foreign currency liquidity, a new transaction was structured to attract all 2 (two) year resources in the amount of USD 75 mln at a variable rate.

In 2018, as a result of the close cooperation with different rating agencies, Moody’s updated the deposit rating in national currency to Ba1 and assigned a new counterparty risk rating to Ba1, while Expert RA confirmed a credit rating of ruAA.

2.5

Correspondent Relations

In 2018, EXIMBANK OF RUSSIA continued to pay attention to the development of its correspondent network and the establishment of correspondent relations with the foreign banks.

In order to build the credit infrastructure and promptly make the payments to the Russian exporters, the relevant correspondent accounts were opened in the banks of Vietnam, Republic of Kyrgyzstan, Turkmenistan, Republic of Kazakhstan, United Arab Emirates.

As a part of the implementation of the Development of the Settlements in the National Currencies project, the regular works are performed to improve the practice of using the national currencies in the crediting and making the settlements regarding the export and import transactions. The presence of the correspondent accounts in the national currencies allows us to almost fully satisfy the needs of the customers of EXIMBANK OF RUSSIA for the settlements under the foreign economic agreements. The development of the settlements in the national currencies is an important area of activity of EXIMBANK OF RUSSIA, which allows the successful implementation of the measures to support the Russian exports.

The counterparty banks in the Central Europe, South Asia, Persian Gulf and the African region establish the credit risk limits for all documentary (guarantee) transactions, which allows the Russian exporters to implement the projects in the countries that buy their products at the competitive price.