For export

Export trade finance by BPS-Sberbank:

  1. Arrangement of discounting (advance payment of documents) under deferred letters of credit;
  2. Confirmation of export letters of credit issued in favour of our customers;
  3. Issue of guarantees by BPS-Sberbank in favour of our customers under export contracts.

Who will benefit from export finance services?

  • Exporting companies selling abroad materials and parts, machinery and equipment of Belarusian origin.

Advantages:

  • Efficient instruments in conditions of falling trust between the parties to a foreign trade contract;
  • Reduction of the exporter’s risk working in specific or instable regions;
  • Opportunities to expand the sales market, also in emerging countries;
  • Expansion of available financing sources;
  • Absence of growth of accounts payable and non-payments for the shipped products.

Tenor:

Up to 2 years

Arrangement of discounting

The central component of the structure is the export letter of credit issued by order of the buyer by a foreign bank in favour of the customer of BPS-Sberbank stipulating deferred payment.

BPS-Sberbank (as the advising bank) arranges for early payment (discounting) of the documents presented by the customer under the export letters of credit to foreign partner banks, due to which the customer receives proceeds at the moment of discount, before expiry of the deferral period.

Discounting is possible under confirmed export letters of credit issued in favour of BPS-Sberbank’s customers by issuers for which the partner bank of BPS-Sberbank has set risk limits.

  • Early receipt of proceeds. The customer gets payment for the goods under the letter of credit after presentation of the documents under the letter of credit, their verification by the foreign bank, and their early payment (without waiting for expiry of the deferral period);
  • Low additional costs. The discounting fee charged by the foreign bank is usually at the level of the most competitive rates in the international money market;
  • Minimal package of transaction documentation (foreign trade contract).

Discounting structure can be implemented with letters of credit opened by large banks of the following countries:

  • Present the foreign trade export contract with attachments, amendments and supplements to the respective regional directorate (banking service centre) of BPS-Sberbank;
  • Present the application for consideration of discounting transaction arrangement under the export letter of credit with payment deferral to the respective regional directorate (banking service centre) of BPS-Sberbank;
  • View the fee rates charged by BPS-Sberbank for processing of export letters of credit
  • Advising of the export letter of credit through BPS-Sberbank;
  • Issue of the letter of credit by an issuer acceptable for the discounting bank;
  • Payment of the discounting bank’s fee in advance, and payment of fees charged by BPS-Sberbank (as per Fee Schedule) for processing of the export letter of credit.

To consider a possibility of discounting, please address BPS-Sberbank’s offices.

Confirmation of letters of credit/ issue of guarantees

Who will benefit from this service?

Exporting companies receiving letters of credit/ guarantees in their favour under concluded export contracts.

Advantages for the customer:

  • Liability for payment under the instrument issued in favour of the customer is borne by BPS-Sberbank (in addition to the liability of the non-resident bank);
  • Reduction of the risk of non-payment under the letter of credit/ guarantee;
  • работа только со своим «домашним банком»;
  • Communicating only with the ‘domestic bank’;
  • Reduction of time costs for presentation of the documents and the payment under the letter of credit/ guarantee;
  • Real-time control of the transaction execution;
  • Free of charge consulting.
  • · Present the foreign trade export contract with attachments, amendments and supplements to the respective regional directorate (banking service centre) of BPS-Sberbank;
  • · Present the foreign trade export contract with attachments, amendments and supplements to the respective regional directorate (banking service centre) of BPS-Sberbank;
  • · View the fee rates charged by BPS-Sberbank for processing of export letters of credit.
  • The issuer bank under the letter of credit/ counterguarantor under the counterguarantee shall be acceptable for BPS-Sberbank (to be determined at the stage of arrangement);
  • Payment of fees charged by BPS-Sberbank.

To consider a possibility of guarantee/ letter of credit issue, please address BPS-Sberbank’s offices.