Rabobank Export Finance finances the exports of capital goods and services, primarily to emerging countries. The relevant credit risks, mainly commercial and political risks, are covered by the government-backed Export Credit Agency (ECA) in the exporter’s home country. The key sectors in which we are active include food & agribusiness, marine & offshore, short and long term ECA transactions, technology and construction.
- Medium and long term financing for buyers of capital goods, mainly in emerging markets
- Advance payment, performance and warranty bonds to exporters with ECA coverage
- Working capital financing for exporters
- ECA covered short-term financing of commodities
Advantages for buyers:
- Longer tenors than normally available from local banks. These can be up to 12 years plus the construction period
- Competitive pricing
- Less restrictive covenants and security requirements compared to alternative solutions
- Options to fix interest rates
- US dollar, Euro and other major currencies
- Provides additional credit lines on top of existing banking facilities
Advantages for exporters:
- Providing buyers with financing to the buyer at attractive terms helps exporters to win new contracts.
- Having financing in place for the buyer secures payments to the exporter
- Payments from the loan are paid directly to the exporter
- No repayment risks for the exporter
In addition, non-recourse project finance structures can benefit from ECA cover and thanks to our close partnership with Rabobank’s Project Finance team, we are well positioned to combine Export Finance and Project Finance products.
Recently financed projects include bridges and hospital equipment in Sri Lanka, a new cocoa processing plant for Ivory Coast, an MDF plant in Mexico, a milk processing factory in Zanzibar and tugboats for Nigeria.
Twan Geurts Global Head Export & Project Finance