KfW IPEX-Bank has introduced a new financing product that enables the bank to offer long-term financing for small export transactions. For this purpose it will be using an instrument of Northstar Europe, a subsidiary of Canada-based Northstar Trade Finance, which is being introduced into the German market.
Through Northstar Europe, Northstar Trade Finance will be providing financing on behalf of KfW IPEX-Bank for European export transactions from a volume of EUR0.5mn to EUR5mn for terms of up to 5 years.
Northstar Europe is a joint venture between Northstar Trade Finance, the Office du Ducroire (Luxembourg’s public export credit agency) and SNCI (Luxembourg’s promotional bank). The lean structure of this provider and processes tailored to the needs of this financing market enable economically viable transactions in lesser volumes. The operations must be eligible for cover from an export credit agency/ECA (Euler Hermes for German exports) to qualify for financing.
Heinrich Heims, speaker of the board of managing directors of KfW IPEX-Bank,said: “We are closing a gap in our range of products. We will be providing an adequate supply of financing schemes for small tickets, and in this way we will be supporting especially the operations of small and medium-sized exporters. Particularly in the crisis, an instrument of this kind can prove to be a sales argument for German and European exporters that should not be underestimated.”
KfW IPEX-Bank is responsible for international investment, trade, project and export finance within German-based KfW Bankengruppe.
