Documentary Transactions
and Trade Finance

• Issues and acts as nominated bank under LCs of any form, type and structure, in both foreign currency and Russian rubles;
  
• Issues LCSs with a collateral other than cash collateral (given that the relevant documentary credit limits set by the Bank); 
  
• Advises (notifies) customers of any LCs opened in their favor and amendments thereto with or without adding confirmation; 
  
• Offers consultations on preparing documents for payment under LCs from other issuing banks and monitors payments;
  
• Transfers letters of credit; 
  
• Assigns proceeds under letters of credit; 
  
• Provides other services, such as drafting payment terms for customer contracts, and preparing LC drafts for negotiation with their counterparty.
  

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• Trust relationship between the Buyer and the Seller;
  
• Confidence in the Buyer’s ability to execute payment.
  

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Bank GPB (JSC) offers a wide range of Trade Finance products for corporate customers.

The key distinguishing features of Trade Finance is its “tied” nature, i.e. transactions are “tied” to a foreign trade contract. Another characteristic feature is the competitive financing terms due to the inherently lower-risk nature of Trade Finance.

Products for importers:

• Issuance of import Letters of Credit (LCs), including Standby Letters of Credit (SBLCs), confirmed by a foreign bank. At the request of its customers, Gazprombank issues LCs in favor of their foreign counterparties and arranges for confirmation of the abovementioned LCs by its correspondent banks acceptable to the beneficiaries;
• Short- and medium-term financing of customers’ imports by extending deferred payment under import LCs. Gazprombank issues LCs on behalf of its customers and pays to Beneficiaries in accordance with the terms of the LC against presentation of documents at its own expense, granting a period of deferred payment to the customers..;

Products for exporters:

• Pre-export financing (with a repayment tenor of up to 1-2 years) of customers’ export contracts*;
• Confirmation of export LCs, including SBLCs, issued by foreign correspondent banks in favor of Gazprombank’s customers;
• Post-financing of export LCs issued in favor of Gazprombank’s customers. Financing is provided to foreign banks issuing the LCs within the documentary credit limits established by Gazprombank for counterparty banks;
• Discounting of deferred payment LCs issued by foreign banks in favour of Gazprombank’s customers under export contracts. Gazprombank makes  early payments under LCs in favour оf its customers upon their request before the originally scheduled deferred payment date. Transactions are executed within credit limits set by Gazprombank for issuing banks.

The above mentioned operations may be structured with the borrower’s direct risk as well as using official export support structures. Such instruments of government export support often make it possible for Gazprombank to offer more competitive pricing terms and longer financing tenors, in particular for exports of Russian goods and services to emerging markets.

Guarantees against counter-guarantees:

• Issuance of guarantees against Gazprombank’s counter-guarantees. At the request of its customers, the Bank acts as counter-guarantor and arranges issuance of correspondent banks’ guarantees in favor of its customers’ counterparties under contracts and tenders;
• Issuance of Gazprombank’s guarantees against correspondent banks’ counter-guarantees. Guarantees are issued in favor of the Bank’s customers, whereas their counterparties under contracts or tenders act as principals.

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