Trade finance deal with Trade and Development Bank of Mongolia
International Bank for Economic Co-operation has implemented the first documentary trade finance transaction (irrevocable reimbursement obligation issuance) with the Trade and Development Bank of Mongolia (TDBM). The reimbursement obligation was issued in favor of one of the leading European banks within the framework of the implementation of a foreign trade contract for the supply of specialized construction and loading equipment to Mongolia – mobile cranes. The purchased cars belong to the newest generation of vehicles, meeting the most modern safety and environmental standards in terms of noise level, fuel consumption and harmful emissions. This is fully consistent with the strategic line of IBEC to support high-tech projects and transactions, as well as environmentally responsible business.
By means of the trade finance products offered by IBEC, the TDBM letter of credit worth about EUR 1.2 million is being executed with a deferred payment of up to 10 months. These terms enabled the parties to structure the transaction as comfortable as possible for both the seller and the buyer.
IBEC is consistently supporting Mongolian foreign trade, both in the European and Asian directions. TDBM is one of the oldest IBEC partners among financial institutions of Mongolia in trade finance, with which IBEC is building stable partnership. Due to the developed business relations in the Mongolian market, IBEC clients can count on a full range of services and optimal working conditions.