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Aegean Baltic Bank - Trade Finance

Greece | Financial Institutions

Identification Code:: OP/16/0061
Total Operation Cost:: 10.000.000 EUR
Maturity:: 12 months
Operation Status:: BSTDB Approved Amount – Approval Date

10.000.000 EUR – 22 Sep 2017
: BSTDB Signed Amount – Signed Date

-10.000.000 EUR – 14 Sep 2025

10.000.000 EUR – 23 Nov 2017
: Status:
Cancelled
Description and Purpose of the Operation:: The Facility aims to contribute towards expanding of the trade finance activity of the Borrower, among BSTDB Member Countries. The proceeds shall be used by the Borrower exclusively for the purpose of extending short-term pre-shipment and/or post-shipment export and/or import financing to eligible customers of the Borrower, who, import goods from Member Countries and/or export goods to all countries, while imports and exports of oil products will be made from/to Azerbaijan, Bulgaria, Greece, Romania and Russia.
Countries of Operation:: Greece (100,00%)
Financial Product:: Trade Finance
Sector:: Financial Institutions
Domain:: Private
Borrower/Client:: Aegean Baltic Bank is a non-systemic shipping bank which operates under the regulatory supervision of the Central Bank of Greece and the Eurosystem (ESM) providing the full range of banking services and specializing in the arrangement, participation and agency of syndicated shipping loans.
Co-Financers/Participants:: n/a
Guarantors/Sponsors:: n/a
Developmental and Regional Cooperation Impact:: The operation is expected to have modest (given the small amount of the loan) but favorable economic benefits for the region. Given the nature of the funding, these benefits have the potential to accrue to all members states whose exporters/importers will eventually utilize these loans. In addition, the financing will contribute to increases in employment, increase in export capacity and competitiveness, tax revenue gains and multiplier effects for other parts of the economy. The regional cooperation element is likely to be positive and significant in terms of per unit of funding. The operation is consistent with sector's and operation's priorities outlined in BSTDB's Medium Term Strategy and Business Plan 2015-18 and the Country Strategy for Hellenic Republic 2015-2018.
Environmental Classification and Impact:: Screened E&S category FI, ABB's approach towards addressing E&S issues is considered appropriate, however considering the specificity of financing the shipping industry and the E&S risks and impacts it is associated with it is advisable, as part of BSTDB loan, to develop a basic E&S management system consisting of an E&S Policy and internal procedures commensurate with the risks of the shipping sectors, and fully integrate these into its portfolio management. This would allow ABB to address the E&S risks and impacts in a more systemic, preventive and comprehensive manner.
Operation Leader:: Financial Institutions II
E-mail:: fi2@bstdb.org