Russian corporates turn to export credit

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21 October 2009

ECA-backed activity in Russia in particular has increased considerably. Jonathan Bell examines the reasons behind this and assesses if this is a feature that will remain on the financing map.

Across the Eastern Europe region, there is very much a mixed bag of activity in relation to export credit agency (ECA)-backed business. With such a wide range of economies this is not a surprising theme. What is a big change though, is the way that ECA-backed business has been accepted by so many Russian corporates. And export financiers, that have the capacity and focus on the country, are reporting highly increased levels of interest from many new top corporates.

Increased activity – the view from the banks

“We are seeing exceptionally high levels of activity, especially for ECA-backed business. Two or three years ago the vast majority of financing would have been done through syndicated loans or bonds – why, because its simpler, easier, faster – and importantly for Russian companies the pricing on all forms of bank financing was falling consistently and quite dramatically over a five-year period,” remarks Kevork...

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