International Bank for Economic Co-operation has carried out settlements for the supply of an indirect cooling system for a combined heat and power generation plant from Hungary to Russia. The cooling equipment is designed and manufactured by the leading European manufacturer Enexio Hungary Zrt. and contributes as a key component to the construction of a strategic infrastructure facility in the Russian Federation.
IBEC opened a letter of credit in the amount of EUR 8 million for settlements, as well as a deposit in the amount of EUR 0.8 million as one of the security mechanisms of the transaction. Effective trade finance instruments proposed by IBEC ensured a quick and comfortable contract implementation scheme for participants. “Both supplier and buyer became clients of our Bank, therefore, the letter of credit was issued within the shortest possible time, the transaction mechanism maximally meets the speed and security of settlements and minimizes the costs carried by participants,” – said Denis Ivanov, Chairman of the IBEC Board.
The implemented contract has become another significant step for IBEC in developing mutually beneficial relations with Hungary. Earlier, the Bank took part in a syndicated loan for one of the leading pharmaceutical companies Alvogen CEE Kft, issued number of counter-guarantees in favor of the Russian subsidiary of the largest Hungarian bank OTP Bank, took part in a bond offering of OTP Bank Hungary, and in April – in the placement of sovereign Hungarian Eurobonds.
Considering the unique for the international development institute mix of services, offered by IBEC – trade financing and settlement services, including perspective usage of the blockchain platform – the Bank is becoming more involved in the “Hungarian” agenda and considers Hungary as an increasingly important area of its business activity. IBEC offers Hungarian companies assistance and support in the successful business activities in its member states and related geographical locations, including both traditional European destinations and new markets, such as the CIS and the Asian region. Currently, IBEC and the Hungarian government are conducting working consultations on the country's return to the Bank’s member states.