If you wish to up-date your production equipment — purchase quality imported machinery, production lines and equipment (capital goods), but for various reasons do not consider it expedient or possible to divert large sums of money from your business, Bank "Aval" can resolve this problem.
We are willing to offer you a loan for the purchase of equipment imported from Germany, the cost of which is at least EUR 250,000, in the form of a Letter of Credit (L/C) against foreign economic agreements, for a period of 2 — 5 years, within the framework of the "Bankgesellschaft Berlin" credit line programme.
You must make a pre-payment of just 15% of the value of the capital goods. Bank "Aval" then issues an irrevocable L/C to the German exporter for the remaining 85%. According to the "Bankgesellschaft Berlin" programme, the L/C will only be opened after the delivery and checking of documents confirming delivery to the Ukrainian importer.
Repayment is conducted at least every six months in equal installments.
The interest rate is estimated at 12% per annum and can change according to a decision by "Aval’s" Loan Committee, the specifics and maturity period of each individual project, as well as changes in the EURIBOR interest rates.
Financing within the framework of this programme is extended after:
Successfull completion of the loan procedure by the borrower;
Approval by "Aval’s" Loan Committee;
Agreement of "Hermes", the German National Export Insurance Agency, to insure risks against the foreign economic contract between the Ukrainian importer and his German counterpart.
Collateral:
The Bank accepts the following as collateral:
Real estate (apartments, parts of buildings, summer houses, retail outlets and other buildings
vehicles
turnover goods, raw material (no more than 25% of the loan amount)
equipment, office equipment
other property
Collateral evaluation is conducted by the Bank’s evaluators at no additional cost to the borrower, based on existing market (not balance) value for a definite type of collateral, less the Bank’s discount. The estimated value of the collateral should be 1.5 — 2 times that of the loan amount.
If you do not have adequate collateral or pledge for the required amount of credit funds, we are ready to accept property rights against agreements for the purchase of machinery or equipment, which is being financed within the framework of this programme, as well as the equipment — after its deliveryl onto Ukrainian territory.
Required Documents:
Loan and credit line application form;
You can obtain a sample agreement for the purchase-sale of agricultural machinery with a foreign counterpart at branches of Bank "Aval".
Successfull completion of the loan procedure by the borrower;