EBRD increased

EBRD increased the credit limit for TransCapitalBank (TCB) under Trade Facilitation Programm (TFP) from USD 15 up to USD 30 mln.

European Bank for Reconstruction and Development approved the increase of TCB's non-committed facility under TFP from USD 15 up to USD 30 mln. The maximum validity of EBRD's guarantees to be issued under TFP to support TCB's customers' export-import transactions was also extended from 2 up to 3 years. So, it enables TCB to finance not only purchase of consumer goods but also import of capital goods (e.g. equipment for SME customers). Moreover, EBRD provided TCB with an opportunity to attract bilateral loans from financial institutions available for funding of TCB's already existing and future pre-export finance and post-import finance sub-loans to Russian corporates, including local distribution of imported goods (e.g. purchase and distribution of imported cars, consumer electronics or mobile phones in Russia).
TCB joined EBRD's Trade Facilitation Program in June 2004. Using TFP instruments enabled TCB to enlarge the range of banks-partners on the international market as well as the geography of its Trade Finance operations, and to decrease the costs of financing as well as to attract new customers.
In addition to the TFP credit facility, EBRD granted TCB a US$10 million 4-year SME loan and US$5 million 7-year Mortgage loan. In July 2006 the EBRD's Board of Directors approved equity participation project with Transcapitalbank for purchase of 25% + 1 share.
The a.m. increase of the amount and terms of EBRD's TFP limit contributes to rise of TCB's competitive capacity on the Trade Finance market and strengthening TCB's ability to continue successful business development. At present TCB enjoys clean credit lines from its international counterparties with total volume of up to USD 200 mln.