XACBANK AND TERRA EXPRESS LLC HAVE SIGNED USD 6.2 MILLION AMOUNT OF IMPORT CREDIT AGREEMENT
XacBank and Terra Express LLC have signed the structured credit cooperation agreement for a period of 3 years. The structure is new to the Bank as it involves several international finance institutions and government credit agencies to arrange this potential amount of credit.
In terms of operational structure of this credit, the loan amount of USD 6.2 million is disbursed to XacBank from ING bank of the Netherlands, financed by the Swedish Export Credit Agency (SEK) and guaranteed by the Swedish Export Credit Guarantee Board (EKN) in order to support the export trade of “Volvo”, one of the most reputable Swedish companies and the import trade of Terra Express LLC of Mongolia.
According to this potential transaction, Terra Express LLC imports Volvo truck tractors from the “Volvo” manufacturer in Sweden and double trailers from “PT Tractors Pandu Engineering” company in Indonesia via V-performance LLC of Mongolia with a purpose of supporting its business operations.
EKN and SEK are Swedish government agencies that support exports by providing export credits and encourage sales overseas through the issuance of guarantees, therefore insures commercial and investment banks against risks of non-payment.
The agreement is greatly valuable to XacBank as it has opened the doors for further fulfilling financial needs of large traders and production companies in Mongolia by cooperating with international finance institutions and government agencies at the similar level.
