Iconic image of London showing the world famous Big Ben.
London and New York regularly swap places for top and second places on the list of largest financial centers in the world. In the latest edition, London comes in second. London is home to the Bank of England (BoE), one of the oldest and most prestigious central banks in the world. The London Stock Exchange (LSE) is among the world’s top five stock exchanges, and the city has one of the world’s largest banking sectors.
Export Finance
What is Export finance?
Export finance, also known as trade finance, refers to financing or funding activities related to export, import, and international trade.
Export financing aims to support businesses in accessing international markets. Once a shipment has left domestic customs, there can be a significant time period while the goods are in transit, and are then collected by the importer.
Especially where emerging markets are concerned, the ability to extend attractive payment terms to the importer is often a huge part of winning an order.
Export finance aims to maintain positive cash-flow cycle during the gap.
What Is an Export Credit Agency (ECA)?
Export finance is usually facilitated by the Export Credit Agency (ECA) of the exporting country.
ECAs play a major role in world trade. The export credit guarantees they offer lower the risk of private lending. ECAs are therefore becoming leading players in international project financing and exports. ECAs help fill the funding gap that private-sector lenders create with their inability or unwillingness to provide financing. They help all products and services compete on a global scale.
ECA support of international trade is an increasingly important factor in individual transactions and for projects being undertaken in developing countries. The availability of the funding that ECAs provide is vital for project completion and the full realization of the resulting exports in these countries.
Leading Export Credit Agencies
UK Export Finance (UKEF)
Export-Import Bank of the United States (EXIM Bank)
The Export Import Bank of China
Euler Hermes Aktiengesellschaft (Germany)
Japan Bank for International Cooperation
Atradius Dutch State Business
Export Development Canada
Coface (France)
sace gruppo cdp (Italy)
Export Finance Australia
Korea Eximbank
What is the role of Investors Group Ltd.?
In a nutshell, we manage the process of sourcing the required export finance for the overseas project, from Export Credit Agencies, such as UK Export Finance. In addition we oversee the application process for the said Export Finance.
We have been successfully working with UK Export Finance (UKEF) for some time, delivering support for overseas projects and UK exporters.
In collaboration with our Dubai and U.K. based partners we possess the required skills and experience to ensure that the Export Finance application is submitted in a professional manner, complete with all the supporting documentation.
Benefits of working with us and the right Export Credit Agency.
No inital assessment cost.
Low interest rates, 6 Month USD LIBOR plus 0.70% to 1.25% (fixed or variable rates), with repayments every six months commencing six months after the operational date.
Low cost finance when compared to traditional bank lending.
Access up to 85% of the contract value as debt finance.
Extended loan periods from 10 to 14 years, depending upon the nature of the project.
Minimum UK content 20%, expected to be 30%.
Maximum Local content 50%, target 23%.
We manage the entire application process through to financial close.
Required Documentation.
In order to make an initial assessment (at no cost) to determine if the proposed project meets the Export Credit Agency criteria for funding, we shall require the client to submit the following:
Three years audited accounts
Company/Individual Profile
Corporate organization structure, if part of a group.
High level project information: Project Summary, High level Cost Plan, High level programmers/Schedule
If Available: Business Plan, Financial Model, Market Analysis, Competitor Analysis
Process.
If the Project is a GO and the client is in agreement to proceed, we will:
Issue an onboarding Appointment Letter and ask for a small retainer fee.
After receipt of these, we will complete the onboarding (Know Your Client & Due Diligence).
After the onboarding we will issue a Service Agreement, which sets out our professional Fees together with all of the information that will be required to reach financial close.