CIRR-based credit facility over 2 years refinanced by Magyar Export-Import Bank Zrt. (Eximbank) for pre-financing export related to goods or services

UniCredit Bank Hungary Zrt. provides a CIRR-based fixed interest rate loan in EUR refinanced by the Magyar Export-Import Bank Zrt.(hereinafter referred to as Eximbank) in frame of Export Pre-financing sub-program for pre-financing the direct export of goods and services to companies in order to promote their export operations.

Why is the Eximbank’s export pre-financing loan advantageous to your company?

•  export pre-financing loan with favourable, CIRR-based rates of interest fixed for the whole term
•  access to medium-term financing with fixed and calculable interest rate, fees and debt service.

Main parameters of the loan:

Purpose of the loan:          long term working capital financing for export of goods, services

Loan type:                         non-revolving working capital loan

Loan amount:                     minimum EUR 40,000 and maximum EUR 6,500,000. The client’s aggregate by Eximbank refinanced loan amount (not including the individual refinanced loan/s) granted by our Bank and by other financial institutions must not exceed the amount of EUR 6,500,000 between 01 September2017 and 12 September2018

The loan amount must not exceed 85% of the for the first measuring period (e.g. 12 months from the disbursement of the loan) planned value of the financed export deal.

Term:                                 at least 24, but at longest 60 months from the date of disbursement but not later than 12 September 2023

Currency:                           EUR

Interest rate:                       EUR CIRR + interest margin, depending on the annual net sales, the result of the credit rating of the Borrower. The interest is fixed for the whole term of the loan

Interest payment:               every month or every 3 or 6 months, on the last day of the interest period, due on the same day of the principal repayment

Principal repayment:           every month or every 3 or 6 months in equal installments. The first principal repayment is due in 1, 3 or 6 months following the disbursement date of the loan

Fees                                  loan related fees are defined individually in accordance with Eximbank’s regulations

Collaterals:                        the usual banking collaterals depending on the result of the credit rating of the Borrower

Draw down:                       one-off, lump sum draw down

To whom do we recommend the Eximbank’s export pre-financing loan?

To a resident business organization that was established under Hungarian law and has a registered seat in the territory of Hungary to which the following qualifying reasons apply:

• the annual net sales of the Borrower in the last annual report prepared in accordance with the laws on accounting do not exceed HUF 15 billion and it has less than 250 employees;
• it has submitted the required export contracts / export framework agreements with regard to the export deal. If there is no available export contract or export framework agreement the - presentation of the export sales in the preceding years, the available confirmed orders and letters of intent from the Borrower are needed to justify the intended export transactions volume for the whole term;

•  in case of pre-financing export of goods it has a Certificate of Hungarian Origin about the subject / subjects of the financed export deal according to product groups covering at least 50% of the financed export deal;
•  it has to fulfill the conditions, that at least half of its employees stand in legal relationship subject to insurance obligation according to the regulations of the Act on the Eligibility for Social Security Benefits and Private Pensions and the Funding for These Services, respectively of the Act on Fixed-rate Tax of Small Taxpayer Enterprises and Small Company Tax and in this respect the Borrower has to submit the corresponding confirmation issued by the health insurance agency of the capital city or county government offices;

•  it is not under bankruptcy, liquidation or winding up proceedings or such proceedings have not been initiated against it;
•  it is not subject to bankruptcy, liquidation or dissolution proceedings and no enforcement procedure was or has been pending against it;
•  the Company Registry Court initiated no compulsory strike off or involuntary deregistration procedure against it;
•  in case of private entrepreneur its status in the register of sole traders is not terminated or suspended); neither a procedure for banning its activity is initiated against it by the competent authority, nor its activity is banned by the authority, nor suspended its sole trading activity;
•  its tax number has not been suspended or deleted;
•  it has no public debts that are overdue and are either tax debts or debts that may be recovered as revenue debts, unless the tax authorities have allowed deferred payment or payment in instalments;
•  it has no debts from either a loan agreement, a bank guarantee agreement, or a leasing contract which are overdue in the KHR (Central Credit Information System);
•  it holds all the necessary permissions and licenses from the authorities for the fulfillment of the financed export deal;
•  it does not pursue activities that are in breach of the legal rules and regulations on the protection of the environment;
•  where it was ordered by the European Commission to repay a subsidy, it has repaid the illegal state aid by the set deadline;
•  within 3 years before the loan contract’s signature date it has satisfied all its obligation that it had undertaken in the subsidy agreement in relation to subsidies granted from the sub­systems of the central budget, the European Union’s pre-accession instruments or structural funds;
• neither the Borrower or any of its owners / senior officers is subject to any restriction under the sanction regimes introduced by the EU, the United Nations and the USA;
• its main (basic) activity is not the following: weapon or ammunition manufacturing, gambling, betting or financial mediation, insurance, counter-insurance, pension funds or other financial activities;
• the customer screening required under the effective Act on the Prevention and Combating of Money Laundering and Terrorist Financing (AML Act) can be performed;
• its capital structure or beneficial owner as defined in the AML Act is known and under the Act on Corporate Tax and Dividend Tax in force the Borrower does not qualify as a controlled foreign affiliate.

This information is not fully comprehensive. Further information about the program is available on the website of the Eximbank: www.exim.hu

In case your company has a stable export clientele and want to make the best use of the advantageous CIRR based refinancing but the parameters of this loan do not suit your needs perfectly, we kindly ask you to contact the Trade Finance Department of our bank (tradeservices@unicreditgroup.hu,  +36 1 301 5131). Our colleagues will check your special demand and find the best solution to pre-finance your export deals.

If you have any questions, please feel free to ask your contact person at the bank, or our colleagues at one of our many bank branches. Further information about our bank and products is available on our website www.unicreditbank.hu.

UniCredit Bank Hungary Zrt.

This information should not be considered an offer. The Bank reserves the right to change conditions. UniCredit Bank reserves the right to decide individually on loan disbursement and on the amount and conditions thereof, based on the loan application and documents submitted.

CIRR” the Commercial Interest Reference Rate to be applied to loans bearing a fixed interest rate with a term of 2-5 years as defined in accordance with the OECD (The Organisation for Economic Co-operation and Development) Agreement and published by the OECD Secretariat. CIRR interest rate is published: http://www.oecd.org/tad/xcred/rates.htm