OREANDA-NEWS  On 19 February was announced, that the Individual Loan Agreement according to which Belagroprombank obtains the loan under the cover of export credit agency Euler-Hermes (Germany) in the total amount of EUR 98.9 mln came in force. It is the largest deal on Belarusian market in the sphere of attracting long-term funds under ECA-cover. The funds are provided by BHF-Bank Aktiengesellschaft (Germany) и AKA Ausfuhrkredit-Gesellschaft mbH (Germany).

It is worth mentioning that approval of insurance agency Euler-Hermes for the project was obtained in unstable situation on the international financial market. Moreover ECA-cover for the transaction was provided beyond the country limit for Belarus and for amount exceeding by far such country ceiling.

Special emphasis should be placed on the fact that unlike standard practice while realizing large-scale projects under the cover of ECAs in the Republic of Belarus resources for the project are granted without providing guarantee of the Government of the Republic of Belarus for Belagroprombank in favor of German banks.

Structure of the deal as well as conditions of financing are unique. Loan agreement provides for 10 years repayment term. Payments under the export contract are to be made by means of nearly 20 letters of credit which have to be transfered in favor of 15 sub-suppliers. Structure of the deal assumes payments through escrow accounts held with BHF-Bank Aktiengesellschaft.

The financing is dedicated to successful implementation of the investment project – organization of polished flat glass (i.e. float-glass) production on JSC “Gomelglass”. Belagroprombank has once again confirmed its status as one of the leading Belarussian banks in terms of cooperation with foreign financial institutions in the sphere of international finance.