The International Investment Bank (IIB) is expanding its trade financing operations with a €2.25mn one-year pilot loan to Russia's B&N Bank, the Moscow-based lender said in a statement on February 20.
The short-term targeted trade related loan (TRL) for the supply of chemical additives from Russia to Romania is the first Trade Finance Support Programme (TFSP) between the countries, both of which are members of the IIB.
B&N Bank (PJSC) is a universal commercial bank founded in 1993 and is rated 'B' by S&P.
The Trade Finance Support Programme (TFSP) allows participating banks to issue documentary letters of credit, guarantees, counter-guarantees, stand-by letters of credit in the case of absence of credit exposure limits set by confirming/financing banks or guarantor banks granting the IIB's covering guarantees and irrevocable reimbursement undertakings.
The IIB was founded in 1970 and has as its current shareholders Bulgaria, Cuba, Czech Republic, Hungary, Mongolia, Romania, Russia, Slovakia and Vietnam. The Bank has undergone major modernisation since late 2012 and is rated 'BBB' (outlook stable) by S&P, 'Baa1' (outlook stable) by Moody’s, 'BBB' (outlook stable) by Fitch and 'A' (outlook stable) by Dagong.
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