Export Development Bank of Iran Overview

 
7/19/2024
 
1
 
Export Development Bank Of Iran
 
 
                    
بسم الله الرحمن الرحيم
                     In the name of GOD
 
Fifth Meeting  of the COMCEC
 Trade Working Group
 (March 6
Th
 2015 Ankara – Turkey)
 
EDBI Overview
 
Export Development Bank of Iran (EDBI) is state-owned entity 
and
rendering a range of customer products.
The Bank was established in 1991 in order to promote non-oil
exports and develop business exchanges with Iran’s international
trading partners.
Acting as agent bank for CBI’s credit line allocated to target market.
The Bank also acts as agent for the 
Islamic Development Bank
,
providing loans to Iranian entities under IDB’s credit lines.
EDBI aims to finance 30% of Iran’s non-oil exports and to build on
its current 70% credit facilities for Iranian exports.
 
Bank data
Start activities:    Sep. 1992
Bank Type:         Specialized/Exim Bank
                          (mainly Promoting Exports)
Employees:        1100
Regulator:          Central Bank of Iran
Foreign subsidiaries:      2
Domestic Branches:       40
       20/3/ 2014  
(IRR Billion)
Total Revenue: 5,834 ($ 228.8 million)
Pre-tax Profit:  594($23.3 million)
Net Profit:        549  ($ 21.5 million)
Total Assets:    133,585($5,237 million)
Total Liabilities:90,582($3,552 million)
Total Equity:     43,003 ($1,686 million)
Ratings 2013 (Capital Intelligence
)
Foreign  currency:
Long term:                   B
Short-term:                  B
Financial Strength:     BB-
Support:                       4
Outlooks:                     Stable
Financial ratio
:
ROA:                    0.41%
ROE:                    1.28%
Core Capital Adequacy Ratio:
(Basel II):           23.29%
 
Financial Services
 
The Bank’s 
business model 
is to provide financial
services to exporters such as:
Project Finance
Investment Finance
Trade Finance
  
- Pre-shipment finance: Suppliers’ Credit (working
Capital).
  
- Post-shipment finance: Buyers’ Credit (MLT) and
Discounting deferred LCs (Short Term).
Bonds, Guaranrees, LCs, Documentary Collection.
Uderwriting of securities.
 
Financial Services
 
EDBI is financing imports items (raw materials,
intermediary and capital goods) by its own
sources or foreign banks credit lines.
Offering financing by means of issuing foreign
currency Certificate Deposits and establishing
insurance coverage through getting
ownerships rights such as mines and road
tolls.
 
 
 
 
 
 
Vision and Mission
 
Promote the growth/expansion of the export sector.
Optimizing finance and minimizing risks.
Develop businees plan (Budgetary implications).
Synergy with commercial and private banks for
supporting of exporters.
Appying suitable credit rationing for exporters (extensive
and intensive margin of exports).
EDBI aims to finance 30% of Iran’s non-oil exports and to
build on its current 70% credit facilities for Iranian
exports.
 
 
7/19/2024
 
7
 
Export Development Bank Of Iran
 
Main markets –Buyers’ Credit:
-
Neighboring countries 
(Azerbaijan, Iraq, Pakistan
... )
-
CIS 
(Armenia, Tadzhikistan, Turkmenistan… )
-
Africa 
(Sudan, Djibouti, Senegal, Ivory coast, Ghana,
Zimbabwe ….)
-
Latin America 
(Cuba , Bolivia, Venezuela )
-
Other Asian countries (Oman, Sri Lanka … )
 
 
7/19/2024
 
8
 
Export Development Bank Of Iran
 
Main fields of financing:
-
Water and sewage
-
Dam, power plants and power transmission lines
-
Road construction
-
Housing
-
Industry and mine
-
Exportation of machineries and equipments
-
Exportation of consumables and foodstuffs
 
 
9
 
Milestones
 
About $2 Billion Credit facilities each year.
Other banking services about $1 billion.
About 5 per cent of credit risks covered by EGFI
About 60% of the loans extended
 in form of
working capital (short term).
 
 
Business Volumes
 
EDBI’s business volume and percentage of
national export for fiscal year 2013 are 2.2
billion dollars and 6.49 percent respectively.
EGFI’s business volumes and percentage of
national insurance coverage for fiscal year
2013 are 1.09 billion dollars and 1.73 percent
respectively.
 
7/19/2024
 
12
 
Export Development Bank Of Iran
 
   Our interests :
EDBI may undertake Co-financing with foreign
partners in project finance.
EDBI may undertake the financing while foreign
partners will provide EDBI with the necessary
guarantees.
Possible Areas of Cooperation:
Bonds,Guarantees,Trade Finance and project
finance.
 
 
 
Main challenges
 
Exporters: Sunk cost (lack of liquidity)
EXIM Bank/ ECA: (Budgetary implications).
Credit Rationing: Exporters with lack of liquidity
refer to banks to obtain loans, banks execute a
credit rationing on exporters’ demands.
Extensive margin of export (possibility of
exporting).
Intensive margin of export (the effect of credit
rationing on foreign sales).
 
 
Those exporters with lack of liquidity refer to banks to obtain facility, thus banks execute a credit rationing mechanism on exporter demands. This credit rationing reflected itself in extensive margin of export (possibility of exporting) and intensive margin of export (the effect of credit rationing on foreign sales of exporter).
 
Those exporters with lack of liquidity refer to banks to obtain facility, thus banks execute a credit rationing mechanism on exporter demands. This credit rationing reflected itself in extensive margin of export (possibility of exporting) and intensive margin of export (the effect of credit rationing on foreign sales of exporter).
 
Proposals
 
Syndication loans (Co-Finance) and insurance
coverage for project finance in member or non
member countries.
Project Finance (
with or without recourse), in
two columns (loan under supplier and buyer
credit and investment under issance of
securites in target market).
 
 
 
 
Thanks for your attention
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Export Development Bank of Iran (EDBI) is a state-owned entity established in 1991 to promote non-oil exports and facilitate business exchanges with international trading partners. It acts as an agent for the Islamic Development Bank and aims to finance a significant portion of Iran's non-oil exports. EDBI provides a range of financial services to exporters and focuses on promoting the growth and expansion of the export sector while minimizing risks.


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  1. Export Development Bank Of Iran In the name of GOD Fifth Meeting of the COMCEC Trade Working Group (March 6Th 2015 Ankara Turkey) 1 7/19/2024

  2. EDBI Overview Export Development Bank of Iran (EDBI) is state-owned entity and rendering a range of customer products. The Bank was established in 1991 in order to promote non-oil exports and develop business exchanges with Iran s international trading partners. Acting as agent bank for CBI s credit line allocated to target market. The Bank also acts as agent for the Islamic Development Bank, providing loans to Iranian entities under IDB s credit lines. EDBI aims to finance 30% of Iran s non-oil exports and to build on its current 70% credit facilities for Iranian exports.

  3. Bank data (mainly Promoting Exports) Employees: 1100 Regulator: Central Bank of Iran Foreign subsidiaries: 2 Domestic Branches: 40 Start activities: Sep. 1992 Bank Type: Specialized/Exim Bank 20/3/ 2014 (IRR Billion) Total Revenue: 5,834 ($ 228.8 million) Pre-tax Profit: 594($23.3 million) Net Profit: 549 ($ 21.5 million) Total Assets: 133,585($5,237 million) Total Liabilities:90,582($3,552 million) Total Equity: 43,003 ($1,686 million) Ratings 2013 (Capital Intelligence) Foreign currency: Long term: B Short-term: B Financial Strength: BB- Support: 4 Outlooks: Stable Financial ratio: ROA: 0.41% ROE: 1.28% Core Capital Adequacy Ratio: (Basel II): 23.29%

  4. Financial Services The Bank s business model is to provide financial services to exporters such as: Project Finance Investment Finance Trade Finance - Pre-shipment finance: Suppliers Credit (working Capital). - Post-shipment finance: Buyers Credit (MLT) and Discounting deferred LCs (Short Term). Bonds, Guaranrees, LCs, Documentary Collection. Uderwriting of securities.

  5. Financial Services EDBI is financing imports items (raw materials, intermediary and capital goods) by its own sources or foreign banks credit lines. Offering financing by means of issuing foreign currency Certificate Deposits and establishing insurance coverage through getting ownerships rights such as mines and road tolls.

  6. Vision and Mission Promote the growth/expansion of the export sector. Optimizing finance and minimizing risks. Develop businees plan (Budgetary implications). Synergy with commercial and private banks for supporting of exporters. Appying suitable credit rationing for exporters (extensive and intensive margin of exports). EDBI aims to finance 30% of Iran s non-oil exports and to build on its current 70% credit facilities for Iranian exports.

  7. Export Development Bank Of Iran Main markets Buyers Credit: - Neighboring countries (Azerbaijan, Iraq, Pakistan ... ) - CIS (Armenia, Tadzhikistan, Turkmenistan ) - Africa (Sudan, Djibouti, Senegal, Ivory coast, Ghana, Zimbabwe .) - Latin America (Cuba , Bolivia, Venezuela ) - Other Asian countries (Oman, Sri Lanka ) 7 7/19/2024

  8. Export Development Bank Of Iran Main fields of financing: - Water and sewage - Dam, power plants and power transmission lines - Road construction - Housing - Industry and mine - Exportation of machineries and equipments - Exportation of consumables and foodstuffs 8 7/19/2024

  9. Export Credit Extended U$D Billion 3.5 3.5 3.1 3.0 2.7 2.4 2.5 1.9 2.0 1.3 1.5 1.2 1.0 0.6 0.5 0.0 1385 1386 1387 1388 1389 1390 1391 1392 9

  10. Milestones About $2 Billion Credit facilities each year. Other banking services about $1 billion. About 5 per cent of credit risks covered by EGFI About 60% of the loans extended in form of working capital (short term).

  11. Business Volumes EDBI s business volume and percentage of national export for fiscal year 2013 are 2.2 billion dollars and 6.49 percent respectively. EGFI s business volumes and percentage of national insurance coverage for fiscal year 2013 are 1.09 billion dollars and 1.73 percent respectively.

  12. Export Development Bank Of Iran Our interests : EDBI may undertake Co-financing with foreign partners in project finance. EDBI may undertake the financing while foreign partners will provide EDBI with the necessary guarantees. Possible Areas of Cooperation: Bonds,Guarantees,Trade Finance and project finance. 12 7/19/2024

  13. Those exporters with lack of liquidity refer to banks to obtain facility, thus banks execute a credit rationing mechanism on exporter demands. This credit rationing reflected itself in extensive margin of export (possibility of exporting) and intensive Those exporters with lack of liquidity refer to banks to obtain facility, thus banks execute a credit rationing mechanism on exporter demands. This credit rationing reflected itself in extensive margin of export (possibility of exporting) and intensive Main challenges Exporters: Sunk cost (lack of liquidity) EXIM Bank/ ECA: (Budgetary implications). Credit Rationing: Exporters with lack of liquidity refer to banks to obtain loans, banks execute a credit rationing on exporters demands. Extensive margin of export (possibility of exporting). Intensive margin of export (the effect of credit rationing on foreign sales).

  14. Proposals Syndication loans (Co-Finance) and insurance coverage for project finance in member or non member countries. Project Finance (with or without recourse), in two columns (loan under supplier and buyer credit and investment under issance of securites in target market).

  15. Thanks for your attention

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