Corporate Customers

Russian Agricultural Bank provides a full range of banking services to corporate customers, mainly to companies operating in the Russian agribusiness.

Lending under the State Program on Agribusiness Development

Russian Agricultural Bank acts as the Government Agent providing financial services to agribusiness and related sectors of economy. The Bank takes part in sustainability programs focused on the social aspects and initiated by the Government:

  • Recovery of loans extended from the Russian federal budget and extra-budgetary sources to legal entities engaged in agribusiness in the period from 1992 to 2000;
  • Loans for grain purchase interventions - lending to federal agents participating in the governmental grain price stabilization program (tenor of 3 years);
  • Implementation of the Federal Law ‘‘On Financial Rehabilitation of Agricultural Enterprises’’.

The aims of these programs are to provide affordable financing to companies in agribusiness, to improve their financial performance so that more rural population may benefit from them, and to promote sustainable and comprehensive development of the industry.

Corporate Lending Programs

  • Investment loans;
  • Loans for current expenses;
  • Seasonal field works financing;
  • Working capital financing;
  • Crop production development;
  • Housing construction in rural areas;
  • Livestock sector development;
  • SME lending;
  • Lending to agricultural credit and consumer cooperatives;
  • Purchase of agricultural lands;
  • Purchase of farm animals;
  • Fishery and mariculture financing;
  • Modern machinery and technology purchasing;
  • Grain market infrastructure development;
  • Development of family livestock-breeding farms;
  • Lending to food and processing enterprises;
  • Refinancing loans;
  • Lending against pledge of export proceeds;
  • Purchase of forestry machinery;
  • Factoring (financing the supply of goods by the customer).

Collateralization

Russian Agricultural Bank extends loans provided for submittal of the corresponding collateral by the borrower (third party) that meets the requirements of the Bank.

Performance of obligations by the borrower may be pledged by liquid assets and/or property rights, warrantee, bank guarantee, including the guarantee of constituents of the Russian Federation.

Russian Agricultural Bank accepts as collateral:
  • Real estate, including agricultural land;
  • Equipment;
  • Transport facilities;
  • Commodities;
  • Farm animals;
  • Future crop;
  • Property rights (including those certified by the security).

Collateral value should exceed the total amount of exposure under the loan agreement inclusive of the interest to the Bank and possible costs associated with the realization of property accepted as collateral.

Structured and Trade Finance

Today, Russian Agricultural Bank and all its regional branches offer their customers a wide range of trade related services, including international payments, letters of credit, guarantee, etc.

Russian Agricultural Bank strengthens its position in Russian market by arranging financing for its customers’ projects under credit facilities offered by first-class world financial institutions. Lending to Russian agricultural commodity producers for purchases of advanced machinery, equipment and pedigree livestock on the basis of loans to Russian Agricultural Bank from banks of various OECD counties under the guarantees from the respective export credit agencies is increasing rapidly. This form of financing enables the Bank to offer its clients competitive financial services, to keep its assets and liabilities well-balanced and raise considerable rather cheap mid-term funds abroad to efficiently invest them into developing its customers’ businesses.

Russian Agricultural Bank offers its clients a complete range of documentary products for foreign trade transactions, including:
  • Import L/C;
  • Export L/C;
  • Deferred payment;
  • Reimbursement authorization;
  • Reimbursement undertaking;
  • Guarantee operations;
  • Import documentary collection;
  • Export documentary collection;
  • Clean collection;
  • Post-finance.

Russian Agricultural Bank cooperates with leading global export credit agencies. ECAs provide government-backed loans, guarantees and insurance coverage against both commercial and political risks.

The Bank continuously deepens the relationship with its partners and widens its international interests.

Bank Guarantees

Bank Guarantee is a guarantee from a lending institution ensuring that the liabilities of a debtor will be met. In other words, if the debtor fails to settle a debt, the bank will cover it. Guarantor, i.е. guaranteeing bank, issues a bank guarantee upon the order and at the expense of customer, i.e.an irrevocable promise to repay the specified amount to the beneficiary under the guarantee. At the same time bank guarantees are not a settlement instrument and are used as a security of the principal obligation.

A bank guarantee enables the customer (debtor) to acquire goods, buy equipment, or draw down loans, and thereby expand business activity.

Banks provide the following national and international guarantees:
  • Payment Guarantee;
  • Tender Guarantee;
  • Performance Guarantee;
  • Advance Payment Guarantee;
  • Loan Repayment Guarantee.

Russian Agricultural Bank provides guarantee transactions in accordance with the Civil Code of the Russian Federation and the generally accepted standards of international banking practices.

Deposits for Corporate Clients and Individual Entrepreneurs

The Bank offers a broad set of deposits for corporate customers and individual entrepreneurs, for placement of temporarily disposable monetary resources.

Asset management companies of non-state pension funds are offered to open term deposits in the Bank.

Russian Agricultural Bank offers deposits with flexible terms, competitive interest rates and with possibility to choose interest repayment period – monthly, quarterly or annually.

Deposit certificates

A Russian Agricultural Bank deposit certificate is a registered security, which certifies the amount of a deposit in Russian Federation currency that has been deposited at the Bank and the depositor’s (certificate holder’s) rights to receive, upon expiry of an established term, the deposit amount and the interest specified in the certificate.

FOREX and Money Market Operations

Russian Agricultural Bank is an active participant of the Russian and international financial markets, which allows the Bank to provide customers with a wide range of FOREX and money market services.

In order to fully meet the needs of customers Russian Agricultural Bank, in addition to standard products, offers transactions on individual terms.

International Settlements

Russian Agricultural Bank provides comprehensive facilities for international settlements through the wide network of correspondent banks, as well as the presence of branches in major Russian cities. The Bank also consults on the most complex forms of payments in foreign currency and local currency in accordance with the internationally accepted practice.

Russian Agricultural Bank, using the extensive practical experience in the field of international settlements, provides such services for the following operations.

Bank Transfer Service
Russian Agricultural Bank, due to the optimally formed network of foreign correspondent banks, provides high quality, safety, speed and absolute reliability in the settlements and transfer of financial messages around the world via SWIFT international network, with minimal transaction costs. The Bank provides transfers in all major convertible currencies, and as well in non-convertible, including the CIS currencies.

Documentary letter of credit

Such form of international payments allows to significantly reducing the risk of loss of both buyer and seller in the foreign trade transaction.

Russian Agricultural Bank offers clients the following services with the use of documentary letter of credit:
  • Opening import documentary letters of credit on behalf of the Bank’s customers, including the confirmation of first-class foreign banks;
  • Opening standby letters of credit;
  • Advising of export letters of credit, including standby letters of credit;
  • Acceptance and execution of export documentary letters of credit;
  • Verification of documents under letters of credit;
  • Reimbursement;
  • Counseling clients at the stage of signing contracts that stipulate for letters of credit.
Documentary Collection
Russian Agricultural Bank performs the following operations with documentary collections:
  • Receiving and dispatching customers’ documents for collection in foreign banks;
  • Delivery of documents under documentary collection against payment or acceptance of bills of exchange by the buyer.

Foreign Exchange Control

Russian Agricultural Bank, in accordance with the legislation on foreign currency of the Russian Federation and the Bank of Russia regulations, performs foreign exchange control of all types of currency transactions made by residents and non-residents, including those on foreign trade agreements (contracts) on purchase of goods, on contracts related to rendering services, the transfer of information and intellectual property, and on loan agreements, as well as foreign exchange operations conducted by residents and non-residents for non-commercial operations.

Customized approach in the maintenance of every currency transaction allows the Bank to provide its clients with the high-level services reducing their risks and expenses.

Settlement and Cash Services

Russian Agricultural Bank offers a wide range of settlement and cash services for corporate customers and individual entrepreneurs.

In the Bank a client can open bank settlement account in Russian Rubles and in foreign currency; bank account of a layer who have founded a legal office, court-appointed manager, notary officer in Russian Rubles; special account of the borrower in Russian Rubles; special account opened for the paying agent (subagent) in Russian Rubles; special account of the vendor in Russian Rubles; special brokerage account in Russian Rubles; special account for the housing and utility enterprises in Russian Rubles.

The Bank’s specialists are consulting clients with respect to all of the Bank’s products and services. The settlement and cash services are client oriented and the Bank constantly develops system of distant banking services.

Remote Banking

Russian Agricultural Bank places high emphasis on the introduction of modern banking technologies and offers its customers the ability to distantly manage their accounts with the remote banking services. The Bank offers its clients such remote banking services as "Bank-Client" and "Internet-Client” that allows choosing which is best suited to the customer’s business.

Technical security means used by Russian Agricultural Bank ensure the effective protection of information transmitted using remote banking services, confidentiality and integrity of transmitted electronic documents.

Payroll Card Programs

Russian Agricultural Bank offers corporate customers payroll program under which monetary funds are transferred to the Bank, and then the Bank allocates wages to the employees of the company.

This allows the company to:
  • minimize costs related to the salary payment;
  • minimize cash collection costs;
  • protect the confidentiality of salary payment;
  • have an opportunity to pay bonuses, premiums and other types of material remuneration to the employees.

The company employees are offered associated banking products like payment cards and deposits.

Merchant Acquiring

Russian Agricultural Bank offers to retailer and service outlets merchant services, to accept the Bank’s local payment cards and international payment cards (VISA International, MasterCard Worldwide) in payment for goods and services (merchant acquiring agreement).

The advantages of merchant acquiring are:
  • Increase in competitiveness of retailer and service outlets by upgrading to a new level of customer services;
  • Increase in sales by attracting new types of customers – cardholders that are not limited to the amount of available cash;
  • Reduced costs for cash collection;
  • Reduced risks associated with the cash turnover.

As s part of the merchant acquiring agreement the Bank provides retailer and service outlets with the necessary equipment (electronic terminal), its installation and configuration, expendable materials for the organization of payment cards transactions, maintenance of equipment installed, and provides briefing for employees.

Corporate Banking Cards

Russian Agricultural Bank offers legal entities and individual entrepreneurs to take an advantage of the Bank's corporate banking cards of categories VISA Business / MasterCard Business, if the nature of their activities assumes business trips and hospitality expenses.

Cash funds are granted within the limits set by the corresponding Fee Schedule and requested by the Organization. The organization can set on every corporate bank card the following limits: cash withdrawal limit; limit on payments for goods and services, aggregate limit on cash withdrawals and payment for goods and services.

Russian Agricultural Bank also offers to holders of corporate bank cards "Corporate SMS-Service".

Precious Coins Operations

Commemorative precious coins have a high level of decoration and impeccable quality coinage. These are collector's coins. The issue of commemorative precious coins is dedicated to the anniversaries, memorial dates, significant historical events, and relevant cultural and environmental issues.

Bullion precious coins are the production of traditional highly-automated embossing that is issued in mass edition of up to several million pieces. Transactions with bullion precious coins are mainly used as a tool for investing surplus funds, as the cost of such coins is close to the value of precious metals contained in the coin.

Safety Deposit Box

Russian Agricultural Bank offers to corporate and retail customers to lease individual safety deposit boxes to store cash, jewelry, securities, documents and other valuables. For the provision of this service the bank charges commission in accordance with the applicable tariffs.

Accreditation of Legal Entities and Individual Entrepreneurs

Russian Agricultural Bank carries out accreditation of legal entities and individual entrepreneurs to provide the Bank and/or its clients with appraisal and consulting services, construction audit and technical supervision. Accreditation is carried out in order to further employ services of accredited parties when considering the provision of investment credit in the amount equal to or more than was set by the authorized body of the Bank.

Accreditation can be performed both by the Bank's Head Office and regional branches. Accreditation is valid for one year with an option of further prolongation of the term.

Cooperation with Insurance Companies

To comply with loan agreement in part of insurance protection a customer is free to choose any insurance company which meets the Bank`s requirements to insurance companies. The Bank evaluates insurance companies in the process of certification to secure their compliance with all necessary requirements. It is made in the interests of customers and aimed to ensure a company`s solvency and creditability.

To obtain a status of a certified insurance company, it should address the Bank with a given application and provide a range of documents and information named in the List of required information. Compliance of an insurance company with the Bank`s requirements is examined in the course of analysis of the provided information and confirmed by inclusion of the company in the list of certified insurance companies.

The insurance protection provided by a certified insurance company must answer the Requirements to conditions of insurance services rendered to the Bank`s borrowers and pledgers which are set by the Bank to secure a high quality of insurance protection for its borrowers in case of insured event happening. The insurance conditions must provide an insurance protection against insurance risks. Cooperation between an insurance company, a borrower and the Bank in the process of provision of insurance protection aimed to ensure the fulfillment of conditions of loan agreement is to proceed in accordance with Interaction procedure between Russian Agricultural Bank and insurance company.

Russian Agricultural Bank has a right to anticipatorily exclude an insurance company from the list of certified companies answering the Bank`s requirements to insurance companies in the following cases:
  • The lack of compliance with requirements to insurance companies; insurer`s failure to comply with the Requirements to conditions of insurance services rendered to the Bank`s borrowers and pledgers, including adoption of insurance conditions which reduce insurer`s responsibility against the one prescribed in Regulations of insurance protection of interests of Russian Agricultural Bank which is mutually accepted by the Bank and insurance companies via standard forms of insurance agreements;
  • Failure of insurance company to provide the Bank with all the necessary documents for exercising a regular monitoring (control) of insurance company`s solvency;
  • Violation by insurer of Interaction procedure between Russian Agricultural Bank and insurance company;
  • Exposure of inadequate information in documents provided by insurer to obtain or prolong its certification or in the process of reporting;
  • Disclosure of confidential information received in the course of interaction with the Bank;
  • Violation of applicable laws or conditions of loan agreements confirmed by a court decision which may cause violation of rights of insured clients of the Bank.