Co-financing and syndicated financing

IBEC participation together with other banks in financing of large projects (investment, strategically important) of corporate clients makes it possible to implement its development bank mission in IBEC member states, since the vast majority of such projects are related to implementation of state programs in the field of renewable energy, medicine, etc.

Product Features Terms of provision Apply for financing

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Individual investment projects and government programs provide for emergence of new producers or public goods (new infrastructure or construction of hospitals), which require accumulation of large financial resources on a long-term basis, which is possible only by pooling of investors and creditors. This allows to achieve a synergy in the formation of project assets. At the same time, distribution of risks between the participants reduces the financial burden on each lender.

Product features

These products may be of interest to public authorities at various levels in the implementation of state development programs, as well as to developers and ECP contractors from IBEC member state or those implementing a project in IBEC member states.

Joint participation with other financial institutions in projects may be realized through co-financing or syndication. Differences between these products are in the design of a credit transaction:

In the case of co-financing, each bank enters into a separate loan agreement with the client. Such contract may vary according to the conditions depending on the requirements of each lender. An agreement between creditors governing general requirements for the client and the procedure for interaction between creditors is a preferable approach

In case of syndicated lending, one syndicated loan agreement is concluded between all participants and a syndicate agent is appointed, who is primarily responsible for coordination. In a syndicate IBEC acts as one of the participants while Arranger role is performed by another financial institution

Advantages

Support for large strategic projects and industries

Accumulation of financial resources of several financial institutions makes it possible to implement large projects that require large one-time investments, for example, for the construction of new production facilities and purchase of equipment. Such projects are usually associated with socially significant industries, such as renewable energy, medicine, transport, waste processing, etc

Image factor

Participation of the IFI with investment grade ratings in a project is a good image reason for negotiations with other financial institutions, including international ones, in order to attract them to participate in the project

Long leding terms

Risk sharing allows IBEC to consider longer financing terms, which is an important component in implementation of such projects, since profit is usually expected much later than completion of construction/commissioning

Terms of provision

Main financing terms are articulated by the syndicate Arranger or in joint discussion with potential co-financing participants. At the same time, IBEC pays special attention to the following aspects:

Co-financing and syndicated financing

Advantages

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