AO UniCredit Bank, Russia has signed a bilateral loan agreement with the International Bank for Economic Co-operation (IBEC).

As per the terms of the agreement, IBEC will obtain unsecured financing for up to three years in an amount equivalent to ten million euros, which the borrower plans to use to develop lending operations further.

The signed loan agreement serves as another important step in the multilateral relationship between UniCredit Group and IBEC, highlighting the mutual interest of both parties in its consequent development.

Earlier this year, UniCredit Group, namely through its subsidiary in Bulgaria, UniCredit Bulbank AD, acted as one of the Joint Lead Managers and Bookrunners in the debut BGN bond issuance for IBEC – raising three-year unsecured funding to the tune of BGN 68 million (approx. EUR 35 million equivalent).

Vadim Aparkhov, Member of the Management Board (Corporate and Investment Banking), AO UniCredit Bank, commented:

«Open and dynamic dialogue between the two banks started in 2020 and led to notable progress in the development of mutual relations over the past couple of years, as evidenced by the set-up of mutual credit lines, executed markets documentation and transactions on debt capital markets. We see the potential for cooperation with IBEC both locally in Russia and in the countries where the UniCredit Group operates in trade finance, derivative business and debt financing (RUB placements included), whilst also resting safe in the knowledge that we can count on IBEC’s support in transactions involving its member countries. This bilateral loan agreement is testament to the confidence we have in our partner and IBEC’s exceptional level of support on behalf of UniCredit."

“UniCredit Group has established itself as a reliable and responsible partner. I would like to note both the already existing fruitful cooperation of the Bank with UniCredit Group, and the prospects for mutual business in our member countries –  Bulgaria, Romania, Slovakia, the Czech Republic, and, of course, Russia, in such areas as lending, trade finance, treasury and funding operations. The signed agreement will contribute to the further development and strengthening of our business relations on a mutually beneficial basis, ” emphasized Denis Ivanov, Chairman of the Management Board of IBEC.

IBEC is a supranational intergovernmental organization, the purpose of which is to promote development of the economies of its member countries, foreign economic relations between business entities of the member countries, as well as the expansion of their foreign trade relations with counterparties from third countries and participation in sustainable development projects in accordance with the 2030 Agenda. The supreme governing body - the Council - consists of representatives of the central banks and ministries of finance of the participating countries, each having 1 vote.

IBEC’s shareholders include 8 countries: Russia (51.59%), Czech Republic (13.34%), Poland (12.01%), Bulgaria (7.56%), Romania (7.12%), Slovakia ( 6.67%), Mongolia (1.33%), Vietnam (0.38%).

Besides providing trade finance and lending services, it provides settlement services in the main world currencies, as well as in the currencies of its member countries. IBEC’s operations are regulated by the intergovernmental Agreement on the Organization and Activities of the International Bank for Economic Co-operation, registered with the Secretariat of the United Nations Organization, the bank's head office is located in Moscow.

In accordance with the resolution of the IBEC Council, the Bank's balance sheet is in euros. In 2018. The IBEC Council approved a new development strategy that envisages a large-scale internal reorganization, active business development and extension of the range of products and services offered thereby.