International Bank for Economic Co-operation - IBEC

20/06/2023

IBEC IMPLEMENTS TRADE FINANCE TRANSACTIONS IN CHINESE YUAN

The International Bank for Economic Co-operation provided Transport and Development Bank (TransBank), a major Mongolian commercial bank, with a trade-related loan of CNY 9.5 million for one year.

The funds provided by IBEC are used to finance the supply of cars from Japan to Mongolia. The supply contract was financed with IBEC loan in Chinese yuan. IBEC continues to support foreign economic relations of its member states in various directions, including the Asian region, diversifies and deepens cooperation with Mongolian banks in the field of trade finance.

In the new external economic realities, the Bank pays special attention to changes in the needs of its counterparties, including the diversification of foreign exchange settlements, which in turn allows IBEC to remain a reliable partner for its member countries and provide assistance in the implementation of trade operations with other countries.

In 2021, IBEC and the Transport and Development Bank signed a General Agreement on the implementation of trade finance transactions in order to develop partnerships and jointly support the export-import operations of Mongolian companies. The parties have been actively cooperating within the framework of the agreement, which has led to the implementation of a number of trade finance transactions totaling approximately EUR 5 million in different industry sectors.

The International Bank for Economic Co-operation provided Transport and Development Bank (TransBank), a major Mongolian commercial bank, with a trade-related loan of CNY 9.5 million for one year.

16/01/2023

AN INCUBATOR WAS OPENED IN TATARSTAN AS PART OF A RUSSIAN-SLOVAK PROJECT IMPLEMENTED WITH THE PARTICIPATION OF IBEC

On January 10, an incubator was opened in the Sabinsky district of the Republic of Tatarstan as part of a Russian-Slovak project financed by the International Bank for Economic Co-operation.

The official opening ceremony of the incubator was attended by representatives of the Ministry of Agriculture of Tatarstan and the Bank's delegation headed by Member of the Board Mr. Peter Osvald. The project operator is Branko Rus which is a subsidiary of the Slovak BRANKO NITRA and has partners in more than ten European countries.

In October 2021, IBEC and the Slovak company BRANKO NITRA signed an agreement to open a three-year credit line to finance the technological complex and start production. The investment project worth EUR 3 million was approved and supported by the Ministry of Agriculture and Food of Tatarstan.

At the initial stage, the incubator is designed to hatch 116 thousand eggs per month, in the future it is planned to double these volumes due to the additional installation of setters and hatchers, as well as launch of up to six farms where the turkey parent stock will be located. The production of turkey hatching eggs using BRANKO NITRA technology includes strict veterinary control and is implemented in compliance with ISO 9001:2000.

The introduction of incubation technology in Russia will significantly increase the efficiency of poultry rearing, optimize price parameters, which is an extremely urgent task for Russia, which is consistently pursuing a policy of import substitution. Moreover, the Bank's investment in food security is in line with the objectives of Sustainable Development Goal 2 “End hunger, achieve food security and improved nutrition and promote sustainable agriculture”

https://ibec.int/news/allnews/an-incubator-was-opened-in-tatarstan-as-part-of-a-russian-slovak-project-implemented-with-the-partic/

10/01/2023

NEW IBEС PARTNERSHIP ON THE EAEU TERRITORY

At the end of October 2022, the International Bank for Economic Co-operation (IBEC) signed a General Financing Agreement with Armswissbank CJSC, a new partner of IBEC in Armenia. As part of the agreement, in December 2022, IBEC provided Armswissbank with a trade related loan in the amount of 29 million rubles for up to three months. The funds received will be used to finance contracts for the supply of food products from Armenia to the Russian Federation.

The General Agreement signed by the banks and the implemented trade finance deal became the first steps in the established partnership aimed at supporting foreign economic activity.

Currently, Armswissbank ranks 5th in terms of assets in the country and is actively working with the leading international development banks. Thus, cooperation with leading financial institutions in the countries of its presence allows IBEC to strengthen its positions both in the main and new markets.

Given the significant changes in the global macroeconomic picture and the turbulence in world markets currently taking place, developing relationships with existing partners and expanding cooperation with banks in the CIS and Asia are the key tasks that the Bank will focus on in 2023.

At the end of October 2022, the International Bank for Economic Co-operation (IBEC) signed a General Financing Agreement with Armswissbank CJSC, a new partner of IBEC in Armenia. As part of the agreement, in December 2022, IBEC provided Armswissbank with a trade related loan in the amount of 29 mill...

22/12/2022

IBEC CONTINUES TO SUPPORT THE REAL SECTOR OF THE RUSSIAN ECONOMY

In December 2022, IBEC provided trade related facility to a new client, the Polyplast Group of Companies, in a total amount of up to 1 billion rubles.

Polyplast is Russia's largest manufacturer of industrial chemical products: high-tech modifying, functional, technological components and additives for key industries. The products of the companies can significantly improve the properties of building materials, paints and varnishes, metal products, detergents and are used, among other things, for the construction of the most important infrastructure projects in the Russian Federation, implemented in severe weather conditions, for the production of building mixtures, adhesives. By decision of the Ministry of Industry and Trade of the Russian Federation, the Polyplast Group of Companies is included in the list of systemically important companies of the Russian Federation.

IBEC's borrowers are the Group's three main plants located in the Sverdlovsk, Tula and Leningrad regions. The term of the line is 24 months, the term of tranches is up to 12 months. IBEC lending is aimed at facilitating the trading activities of factories, developing export supplies, and, taking into account the purpose of the products produced, at ensuring rational consumption and production patterns.

In December 2022, IBEC provided trade related facility to a new client, the Polyplast Group of Companies, in a total amount of up to 1 billion rubles.

21/12/2022

IBEC SIGNED AN AGREEMENT FOR MARKET MAKING OF ITS BONDS

On December 20, 2022 Market Making of IBEC ruble bonds of series 001Р-01 and series 001Р-02 began at the Moscow Exchange within the framework of the concluded trilateral agreement. The Market Maker of IBEC bonds is BANK SINARA.

The bond issue series 001Р-01 was subscribed in October 2019 for 3 years in the amount of 7 billion rubles. In accordance with the emission documents at the end of September 2022, the Bank set a new coupon rate of 10.25% per annum for one year (until the next put date on October 9, 2023) and as a result of completion of put option and subsequent secondary placement 3.8 billion rubles stayed in the market.

The issue series 001Р-02 was placed in June 2020 with the put date in June 2024. On December 12, the 5th coupon was paid in the amount of 154.6 million rubles. All IBEC obligations on bond issues are completed in full and on time.

The Bank also has a BGN 68 million (EUR 35 million) bond issue listed on the Bulgarian Stock Exchange. On December 1, 2022 IBEC paid the 3rd coupon.

“We understand that in the current turbulent market conditions, it is important not only to be a high-quality issuer with low credit risk, but also to minimize the risks of price volatility, which is especially important for financial reporting. Undoubtedly, the Market Making of IBEC ruble bonds will reduce this risk, as well as increase the liquidity of IBEC bonds,” – noted Denis Ivanov, Chairman of the IBEC Board.

On December 20, 2022 Market Making of IBEC ruble bonds of series 001Р-01 and series 001Р-02 began at the Moscow Exchange within the framework of the concluded trilateral agreement. The Market Maker of IBEC bonds is BANK SINARA.

19/12/2022

IBEC CONTINUES ITS SUPPORT FOR THE SUPPLY OF MEDICINES TO THE RUSSIAN MARKET

In the second half of 2022, on behalf of “FC Grand Capital” LLC, International Bank for Economic Co-operation issued 5 payment guarantees in favor of the company's suppliers for a total amount of about 1.44 billion rubles.

The beneficiaries of the guarantees are the world's largest pharmaceutical manufacturers, which provide the Russian market with the most important medicines in almost all areas of healthcare. The Bank's cooperation with “FC Grand Capital” contributes to providing the population with high-quality medicines and the development of the pharmaceutical market in Russia. Healthcare support is one of the key priority areas of IBEC activity, especially in the context of the unstable epidemiological situation that has developed over the past few years.

“FC Grand Capital” is one of the top 5 pharmaceutical distributors in Russia, and has been on the list of the TOP 50 fastest growing companies in Russia for several years in a row. The business volumes of “FC Grand Capital” have grown more than 3 times since the start of cooperation with IBEC in 2017.

In the second half of 2022, on behalf of “FC Grand Capital” LLC, International Bank for Economic Co-operation issued 5 payment guarantees in favor of the company's suppliers for a total amount of about 1.44 billion rubles.

19/12/2022

IBEC EXPANDS SUPPORT FOR THE RUSSIAN PHARMACEUTICAL SECTOR

In November 2022, the International Bank for Economic Co-operation issued a payment guarantee on behalf of the pharmaceutical distributor “ArchiMed” LLC in favor of a major global supplier of medicines to the Russian market.

The amount of the guarantee is 100 million rubles. The guarantee ensures the supply of medicines to Russian pharmacies and medical institutions for the treatment of diseases in such areas of medicine as oncology, hematology, neurology, cardiology. A number of supplied medicines have no analogues from other manufacturers.

“ArchiMed” is a small Russian pharma distributor whose key activities are the supply of medicines and medical devices to pharmacy chains in the Russian Federation, as well as the supply of medicines under the public procurement system.

In November 2022, the International Bank for Economic Co-operation issued a payment guarantee on behalf of the pharmaceutical distributor “ArchiMed” LLC in favor of a major global supplier of medicines to the Russian market.

24/11/2022

IBEC DELEGATION HELD MEETINGS WITH PARTNERS IN VIETNAM

Chairman of the IBEC Board Denis Ivanov and IBEC Board Member from Vietnam Mr. Nguyen Vinh Hung paid a working visit to Vietnam on November 9-11.
On November 10, 2022, the IBEC delegation took part in a meeting with the Deputy Head of the Vietnamese Delegation to the IBEC Council, Mr. Pham Thanh Ha, Deputy Governor of the State Bank of Vietnam.
During the meeting, Mr. Ivanov briefed Mr. Pham Thanh Ha on the main results of IBEC activities in 2022 and informed about the active work carried out by the Bank. In the conditions of an unstable economic environment, IBEC pays special attention to the preparation of the new updated Strategy. The Bank is planning to consider new niches and promising geographic markets for its products.
Representatives of the IBEC delegation emphasized that the Bank's activities in the Vietnamese direction are still focused on promoting the diversification of export and import markets, as well as increasing the share of high value-added exports, highly processed products, high-tech and environmentally friendly products.
“Vietnam has always provided essential support in the implementation of key strategic projects and initiatives that have helped the Bank to find its niche among multilateral development banks,” – Denis Ivanov noted during the meeting.
Mr. Pham Thanh Ha, for his part, highly appreciated the activities implemented by the Bank's management in the current difficult geopolitical situation, and expressed confidence in overcoming the current challenges on the way to the further progressive development of the Bank.
The IBEC delegation also met with the Bank's largest corporate borrower in Vietnam, Hateco Group. The funds provided by IBEC under the credit line are aimed at creating an infrastructure facility in Vietnam, which, in turn, contributes to the intensification of export-import relations and will make a significant contribution to the economic development of the country. The parties discussed the progress of the project and its current conditions, and also considered the possibilities of mutual cooperation in the form of new potential projects that correspond to the mission and mandate of IBEC.
During the visit, the Bank's representatives met with key partner financial institutions, which are: Bank for Investment and Development of Vietnam (BIDV), Saigon-Hanoi Bank (SHB) and Vietnam Bank for Agriculture and Rural Development (Agribank).
At a meeting with Saigon-Hanoi Bank (SHB), the IBEC delegation noted the large number and significant volume of financing operations implemented under letters of credit payable at sight (UPAS LCs) to support foreign trade with countries in Asia, Africa, South America and other regions. The most significant transactions include the buyout of obligations under SHB letters of credit opened under contracts for the supply of monocrystalline solar panel modules to Vietnam, a key element for renewable solar energy projects. The implementation of such “green” forfaiting operations ensured the contribution of the banks to the achievement of the UN Sustainable Development Goals.
Mr. Ivanov and Mr. Nguyen Vinh Hung also expressed their gratitude to BIDV and Agribank for fruitful cooperation and discussed the prospects for trade finance transactions, collaboration in the field of treasury and settlement operations. Moreover, IBEC delegation expressed its readiness to consider new instruments and opportunities for partnerships.
It should be noted that IBEC is also developing syndicated financing in the Vietnamese market. Participation in an international syndicated credit facility in favor of the Vietnamese financial company VNDIRECT Securities Corporation has become a landmark deal in 2022. The total volume of the syndicated loan amounted to USD 100 million up to 1 year tenor, the share of IBEC was USD 15 million. The funds raised will be used to fund the company's general corporate goals, including the development of online platforms to provide clients with greater access to investment products and transactions on the stock market. The implementation of the company's plans will contribute to the development of the Vietnamese stock market, will lead to an increase in competent private investors, and to the availability of financial services for the corporate sector. This is in line with the strategic objectives of the IBEC as a development institution that promotes the economic development of its member countries.

Chairman of the IBEC Board Denis Ivanov and IBEC Board Member from Vietnam Mr. Nguyen Vinh Hung paid a working visit to Vietnam on November 9-11. On November 10, 2022, the IBEC delegation took part in a meeting with the Deputy Head of the Vietnamese Delegation to the IBEC Council, Mr. Pham Thanh Ha,...

12/10/2022

IBEC FULFILLED ITS OBLIGATIONS ON BUYBACK OF BONDS

On October 10, 2022, the International Bank for Economic Co-operation fully fulfilled its obligations on buyback of bonds of series 001Р-01. IBEC debut issue was placed in October 2019 in the amount of 7 billion rubles with a three-year put-option.

The Bank fully paid the nominal value and the accumulated coupon income to all bondholders who submitted sale orders. Earlier, on September 27, 2022, the semi-annual coupon rate was set at 10.25% per annum for 1 year. As a result of preliminary negotiations and secondary sale, investors repurchased bonds in the total amount of 2.8 billion rubles.

«The Bank's business model, which is based on short- and medium-term trade finance, allows us to quickly accumulate funds even in difficult market situations. The quality of assets and liabilities was confirmed by the highest ACRA rating on the national scale AAA(RU) as part of regular monitoring on September 15, 2022. Given the unfavorable market conditions, we have focused our efforts on ensuring liquidity to buy back the entire volume of the issue. And we especially appreciate the decision of a number of investors to repurchase the bonds. Taking into account the status of IBEC and the proposed yield, we hope for a secondary placement of bonds in the near future».
Denis Ivanov, Chairman of the IBEC Board

On October 10, 2022, the International Bank for Economic Co-operation fully fulfilled its obligations on buyback of bonds of series 001Р-01. IBEC debut issue was placed in October 2019 in the amount of 7 billion rubles with a three-year put-option.

16/09/2022

ACRA AFFIRMS THE HIGHEST RATING OF IBEC

Analytical Credit Rating Agency (ACRA) affirms the credit rating of the International Bank for Economic Co-operation under the national scale for the Russian Federation – ‘AAA(RU)’, outlook Stable, and under the international scale – ‘A-‘, outlook Negative.

In its official rating release, ACRA emphasizes that the credit rating of IBEC is driven by its financial metrics that stem from strong capital adequacy, weak risk profile, and adequate liquidity and funding. At the same time, a moderately strong assessment of the shareholder structure and the degree of support from the member states do not affect the definitive rating of IBEC.

Despite a significant reduction in the Bank's capital due to geopolitical events in the first half of 2022, the capital adequacy of IBEC remains high, which still allows the Bank to withstand the potential risks of a significant deterioration in asset quality and a reduction in funding volumes. Although as of mid–2022, the Tier-1 capital ratio was slightly below 25% (39% at the end of 2021), the subsequent depreciation of the ruble made this ratio strong again, according to ACRA's estimates.

The rating agency notes a forced decrease in the volume of the Bank's assets in the first half of 2022. This is largely due to the policy pursued by IBEC for limiting credit risks in the context of the current political and economic crisis. At the same time, the average quality of the Bank's assets is still quite high. The share of NPL overdue by more than 90 days increased due to a decrease in the volume of the loan portfolio, but still remained low.

ACRA assesses the Bank's liquidity and funding position as adequate. The shares of individual items in the Bank's funding structure have changed significantly, but the overall diversification of liabilities has remained at a moderate level. Moreover, the reduction in the share of funds raised from other banks to less than 25% of the IBEC's balance sheet currency had a positive impact on the funding factor score.

“In the current turbulent geopolitical situation, ACRA rating agency has confirmed the highest rating of IBEC under the national scale for the Russian Federation. Despite the current extraordinary circumstances, IBEC has adhered to the fundamental values of free trade and economic diplomacy since the establishment of the Bank and continues its banking activities within the framework of new market realities, providing its customers and partners with all key products and ensuring the fulfillment of all its obligations.”
Chairman of the IBEC Board, Denis Ivanov

Analytical Credit Rating Agency (ACRA) affirms the credit rating of the International Bank for Economic Co-operation under the national scale for the Russian Federation – ‘AAA(RU)’, outlook Stable, and under the international scale – ‘A-‘, outlook Negative.

12/04/2022

THE CHAIRMAN OF THE IBEC BOARD HELD A WORKING MEETING WITH THE HEAD OF THE MONGOLIAN DELEGATION IN THE BANK’S COUNCIL

The Chairman of the IBEC Board Denis Ivanov, with the participation of IBEC Board Member from Mongolia Tserenpurev Gotov, held a working meeting in the format of a teleconference with the Head of the Mongolian Delegation to the IBEC Council, HE the Minister of Finance and the Member of the Parliament of Mongolia Javkhlan Bold.

The Chairman of the IBEC Board briefly highlighted the positive results of the Bank’s activities in 2021, and briefed the head of the Mongolian delegation on the main results of the first quarter of 2022.

“Mongolia always had an active position as a shareholder of the Bank, and we are grateful for the support of the most important initiatives and transformations on the way IBEC has made to becoming a modern multilateral development institution,” – Denis Ivanov emphasized during the meeting.

In response, Minister Javkhlan, highly appreciated the success achieved during the reform period. In the three years since the “restart” of the IBEC activities in 2018, the Bank’s assets have more than doubled and at the end of 2021 amounted to EUR 776 million. An even more impressive 23-fold growth was shown by the Bank's working loan and documentary portfolio, which in July 2021 for the first time exceeded the mark of EUR 500 million.

The major focus of the meeting was on the Bank's activities in the Mongolian direction, aimed at developing the country's economy and its foreign trade relations. The Bank has implemented a number of landmark projects with Mongolian companies and financial institutions. In particular, in 2020, funding for the procurement of the Ulaanbaatar Railway ensured the implementation of a long-term investment program to modernize the Mongolian railway infrastructure. In 2021, the key project of IBEC was participation in the green finance program implemented by the Trade and Development Bank of Mongolia for small and medium-sized enterprises in Mongolia and contributing to the achievement of eight UN Sustainable Development Goals.

Thus, from 2018 to February 2022, only within the framework of the core activities of IBEC, the total investment volume in the Mongolian economy amounted to EUR 229 million. The head of the Mongolian delegation expressed his support for the Bank's activities and readiness to continue joint work.

In conclusion, Minister Javkhlan especially emphasized that the Mongolian delegation highly appreciates not only the long history of IBEC, but also the prospects and potential the Bank has even in the current turbulent environment.

The Chairman of the IBEC Board Denis Ivanov, with the participation of IBEC Board Member from Mongolia Tserenpurev Gotov, held a working meeting in the format of a teleconference with the Head of the Mongolian Delegation to the IBEC Council, HE the Minister of Finance and the Member of the Parliamen...

22/03/2022

IBEC AND VIETINBANK JOIN FORCES TO FINANCE SUSTAINABLE DEVELOPMENT

The International Bank for Economic Co-operation and one of the largest Vietnamese financial institutions VietinBank (the controlling stake belongs to the State Bank of Vietnam) signed a Memorandum of Understanding. Taking into account the new post-COVID reality, the signing took place via video conference. In Moscow, the document was signed by the Chairman of the IBEC Board Mr. Denis Ivanov, in Hanoi – by the Head of the Investment Banking, Treasury and Markets Group , Mr. Nguyen Anh Tuan. The Memorandum is aimed at contributing to the achievement of the UN Sustainable Development Goals, primarily in the field of environmental protection and the development of a "green" economy, responsible consumption and production, and combating climate change.

In accordance with the Memorandum, IBEC and VietinBank will develop cooperation to support and implement projects in areas such as renewable energy, low pollution energy, energy efficiency, green buildings, pollution prevention and control, sustainable use of water and waste, sustainable agriculture, land use, forestry, biodiversity conservation and ecotourism, ecological transport.

IBEC and VietinBank are already actively working together to select projects in the field of solar and wind generation in Vietnam. The signing of this Memorandum brings cooperation between the two banks in the environmental field to a qualitatively new level, and will allow for systematic work on the search, development and financing of "green" projects and programs.

“For IBEC as a development institution, the green economy is one of the strategic priorities. The signing of the Memorandum will intensify this work in the Vietnamese direction, which is important and interesting for us and our clients and partners, including those from other member states. I am confident that, together with such a serious, responsible and respected partner as VietinBank, we will make a significant contribution to solving environmental problems both in Vietnam and in a broader international aspect,” – Mr. Denis Ivanov said at the signing ceremony.

The International Bank for Economic Co-operation and one of the largest Vietnamese financial institutions VietinBank (the controlling stake belongs to the State Bank of Vietnam) signed a Memorandum of Understanding. Taking into account the new post-COVID reality, the signing took place via video con...