Implementation of any investment project requires substantial financial investments. Their sources can be both the personal funds of the enterprises (accumulated funds and profit) and long term loans and leasing.
When implementing investment projects of its customers, "Priorbank" JSC can not only be a direct lender but can also be: an arranger of a syndicated loan (for implementation of large investment projects which require attraction of resources from several banks); a direct leaser, or a lender to the leasing company; an expert in creating business plans; a consultant; a bank agent when arranging foreign financing; a guarantor bank.
Taking into account the restricted opportunities in the lending market of the Republic of Belarus, in terms of long term financing attraction, "Priorbank" JSC applies modern credit instruments to ensure an attractive financial package to enable foreign investment projects to deliver new equipment and for the modernisation of existing production plants.
A number of foreign credit facilities are open to Priorbank, which enable funds to be used for financing investment projects of the Bank's clients. The main lenders to the Bank are such trustworthy international financial institutions as: The European Bank for Reconstruction and Development; International Finance Corporation; and a number of first-class foreign banks including Export and Import Bank (Eximbank), Taiwan, and Raiffeisenzentralbank, Austria. One of the most important aspects of foreign investment attraction is the financing of projects under the guarantee of Export Credit Agencies (ECAs).
Import Financing by Attraction of Credit Facilities of Foreign Banks (under the guarantee of ECAs)
As a rule the main financing conditions are standard in all countries:
- foreign trade financing is carried out by foreign banks situated in the country of production of the equipment, technology or service;
- lending to both public and private importers;
- a minimal loan amount of 300,000 EUR;
- advance payment of at least 15% of the contract value out of the personal funds of the importer or by a "Priorbank" JSC loan;
- financing by a foreign bank of up to 85% of the contract value. As a rule, Priorbank signs a respective agreement with a foreign bank. In its turn Priorbank and the importer sign a Loan Agreement stipulating that the project is financed by the credit resources of the foreign bank;
- the loan is to be utilized within 2 years;
- the loan shall be repaid within 5 years;
Within the framework of investment financing, the Bank is ready to consider any project with regard to establishing a new production plant or the modernisation of an existing one. An investment project can be aimed at the purchase of technological or trade equipment, construction or purchasing of a building, etc.
The principal document which the Bank evaluates when making a decision on the possibility of a loan disbursement is a project business plan. The business plan must stipulate the outlook of the enterprise's development for the entire lending period and their ability to repay the principal and interest when they become due. A good business plan is critical for the successful implementation of your project.
As a rule, the bank provides investment loans of up to 70% of the project implementation cost. Usually the loan term shall not exceed 5-6 years. The loan term can be extended, in exclusive cases, upon the decision of the authorised competent body of the Bank.
Priorbank can apply a simplified approach when financing standard investment projects.
For more detailed information, please, contact the Priorbank call-centre on +375 17 289 90 87.