The Moscow-based International Investment Bank (IIB) has further expanded its operations under the Trade Finance Support Programme (TFSP) and issued the first loan supporting Polish imports to Russia, the bank said in a statement on February 15.

The short-term $3mn loan was issued to Russian CB LOCKO-Bank to finance the purchase of building and finishing materials made in Poland, being the first Russian-Polish trade financing deal for IIB.

“The Trade Finance Support Programme aims to promote trade and economic cooperation of the Bank’s member countries with a focus on supporting SME export development,” Deputy Chairman of IIB board Denis Ivanov said.

The TFSP includes three main types of activities: issuing irrevocable reimbursement undertakings and guarantees; providing finance under foreign trade contracts up to 12 months; and providing letters of credit in the capacity as a reimbursing and financing bank.

In December 2016, Fitch Ratings upgraded the long-term foreign currency Issuer Default Rating of the IIB to “BBB” from “BBB-” with a stable outlook, in the agency’s first change to the institution’s creditworthiness since assigning a rating in 2013.

The upgrade was driven by the “continuing diversification of the Bank’s operations in Central and Eastern Europe”, “the strengthening of risk management policies” and “the reduction of risks related to business environment”, Fitch said in a statement on December 7.

The IIB is a multilateral development institution founded in 1970 and reformed in 2012. Its current nine members/shareholders are Bulgaria, Cuba, Czech Republic, Hungary, Mongolia, Romania, Russia, Slovakia and Vietnam, all participating through intergovernmental agreements.