Hungarian Export-Import Bank Plc. and MIGA’s cooperation continues with another landmark funding transaction – EUR 300 million credit facilities provided to Hungarian enterprises.
Eximbank Hungary signed a loan facility agreement with ING Bank, a branch of ING-DIBA AG (ING Bank) and KBC Bank N.V. (KBC Bank). At the same time ING Bank and KBC have entered into a guarantee agreement with the Multilateral Investment Guarantee Agency (MIGA, a member of the World Bank Group) involving the Non-Honoring of a Sovereign Financial Obligation (NHSFO) guarantee. The face value of the loan facility agreement is EUR 300 million and MIGA’s NHSFO guarantee is covering 95% of principal and interest payments.
Eximbank regularly seeks opportunities for co-operation with international financial institutions. As a result MIGA – based on the comprehensive analysis of the development impact of Eximbank’s role in the Hungarian economy – decided to provide a guarantee which stands behind Eximbank’s current loan facility agreement by guaranteeing the irrevocable and unconditional state guarantee (surety).
Following Eximbank’s 2013 successful bond issuance with the involvement of MIGA’s NHSFO guarantee, the World Bank Group and Eximbank are now extending their cooperation with the aim of further strengthening export credit financing in Hungary, especially among small and medium size companies (SMEs).
With the aid of MIGA’s NHSFO guarantee Eximbank is able to finance its activities in a globally competitive way resulting in significant benefits to be realized through Eximbank in the Hungarian SME sector, which is an important employer in the export sector as well.
As an economic policy tool, Eximbank and Hungarian Export Credit Insurance Plc. continue to successfully support the expansion of the Hungarian export sector by creating favourable conditions.
Budapest, 22 April 2017
Hungarian Export-Import Bank Plc.