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Pre-export Financing Deal by the JSC Ukreximbank acting as a borrower on behalf of Azovzagalmash, Ukraine, was named “Deal of the Year” by Trade & Forfaiting Review Magazine (TFR).

This Letter of Credit US$18 million straightforward pre-export facility for Azovzagalmash was secured by Stand-By Letter of Credit issued by the JSC Ukreximbank in favour of Sumitomo Mitsui Banking Corporation Dubai as financing bank and partially guaranteed by the EBRD under the Trade Facilitation Programme.

According to TFR, “this Ukreximbank deal is a rare pre-export finance in the CIS heavy manufacturing sector. Not only that, but it was a first for the EBRD’s Trade Facilitation Programme (TFP) with Ukreximbank as the conduit bank working on behalf of Azovzagalmash, and was concluded against a backdrop of political instability in the country and, furthermore, after the credit crunch had hit.”

“Pre-export financing is an important trade finance product by Ukreximbank due to essentially and continually rising demand from our valued customers,” says Olena Kozoriz, Head of Financial Institutions and Trade Finance of the JSC Ukreximbank. “Transaction volume of pre-export financing by Ukreximbank in 2007 posted almost 4 times growth compared to the previous year. With lasting economic revival in Ukraine and favorable market conditions for Ukrainian exports we expect further substantial increase in this segment of trade financing.”

“This was not the only submission involving an increasingly busy Ukreximbank. The second, which narrowly missed out on an award, was a $325m Deutsche/Standard Bank-led deal launched at $100m, but raised to approximately $350m in syndication despite carrying a margin of just 80 basis points over Libor”, says TFR.

Full TFR article can be viewed at http://www.tfreview.com