Trade Finance

OTP Bank (Russia) offers a wide range of trade finance and documentary services for its corporate clients which enable the companies to improve their foreign trade operations and fund their activities. Guarantees and letters of credit are extremely popular with companies ensuring safety payments and control over goods and cash flows from the settlement banks. Competitive pricing, individual approach and our expertise – are main advantages that help our customers to save time and money.

OTP Bank welcomes its clients to benefit from the following products:

  • guarantees and stand-by letters of credit;
  • documentary credits:
    - issuance and advising;
    - confirmation;
    - postfinancing;
    - letters of credit with deferred payment and discounting
  • Financing with Eximbank Hungary PLC.

Guarantees

Guarantee is a bank’s irrevocable obligation to pay a certain amount of money to the beneficiary if the principal fails to meet its obligations.

OTP Bank issues all kinds of bank guarantees, namely:

  • payment guarantees (including advance payment and loan repayment bonds)
  • bid bonds
  • performance bonds
  • warranty bonds
  • guarantees in favor of customs authorities
  • guarantees in favor of tax authorities and others

We issue stand-by letters of credit which are preferably used in a number of countries instead of bank guarantees.

Benefits of using bank guarantees:

  • ensuring the fulfillment of counterparty’s obligations under the transaction (contract, tender, loan, etc.);
  • independence from the underlying transaction;
  • limited list of documents for the beneficiary to obtain the  payment under the  guarantee. 

Following the Federal law № 44-FZ OTP Bank is included in the list of banks authorized to submit information and documents about its guaranties to the Federal Treasury’s bank guarantees Registry. 

Information regarding the guarantees issued by OTP Bank under public procurement procedures according to the Federal law № 44-FZ is posted on the website: 

http://zakupki.gov.ru/epz/bankguarantee/quicksearch/search.html

Contact details to verify the issuance of bank guarantees:

Leonicheva Olga
Head of Trade Finance
+7 (495) 783-5400, (*2779)
O.Leonicheva@otpbank.ru

Muminova Tatiana
Head of Trade Finance Sales
+7 (495) 228-8021
T.Muminova@otpbank.ru

Letters of credit

Letter of credit is an obligation of an issuing bank to effect payment on favour of the beneficiary against the presentation of a complying set of documents.

Letters of credit in foreign trade ensure the parties balance their interests and reduce risks. An exporter is guaranteed to receive payment against the delivery of goods. An importer avoids advance payments and can sell the goods purchased prior to paying to the beneficiary.

Letters of credit for importers:

  • safety of funds in case the supplier has failed to ship the goods;
  • verification of shipping documents (necessary for receipt of  goods and customs clearance) by the nominated Bank;
  • funding import operations.

Letters of credit for exporters:

  • Bank’s obligation to effect payment under an L/C if goods are manufactured and shipped;
  • possibility to offer a deferred payment to a buyer after shipment against the Bank’s  obligation under am L/C.

OTP Bank offers letters of credit for international (in foreign currency) and domestic trade operations (in RUB) both with deferred payment and discounting of documents / post-financing provided by first-class international banks or with post-financing arranged by ourselves.  Letters of credit may be confirmed by our foreign international partner banks.

Financing with Eximbank Hungary PLC

OTP Bank is pleased to offer the companies importing Hungarian goods and services long-term financing (up to 5 years) of their contracts under the export finance program of the Eximbank Hungary PLC. The customers can obtain import funding for machinery and other capital goods at 3.5-4% p.a. lower rates on the average than credit rates for the relevant period.

Key terms and conditions of the program:

  • 50% of goods or 25% of services should be of Hungarian origin,
  • Exporter is a Hungarian company,
  • currency – USD or EUR,
  • maximum amount of financing – 85% of the contract (15% should be paid in advance by the customer),
  • financing tenor – up to 5 years, repayment on a quarterly or semi-annually basis.

Besides, OTP Bank participates in the European Bank for Reconstruction and Development (EBRD) Trade Facilitation Program as a confirming bank. Thus OTP Bank can confirm/finance letters of credit of other banks under EBRD guarantee.

Our specialists will be delighted to provide you with more details and answer your questions regarding trade finance:

Leonicheva Olga
Head of Trade Finance
+7 (495) 783-5400, (*2779)
O.Leonicheva@otpbank.ru

Muminova Tatiana
Head of Trade Finance Sales
+7 (495) 228-8021
T.Muminova@otpbank.ru