- The ICO makes a complete catalog available to Spanish companies for the first time, covering all the company's international financing needs: debt, equity or "quasi equity" and guarantees.
- Three types of instruments are collected: export credits, both short, medium and long term; financing for investments abroad and international guarantees.
- This new catalog also responds to one of the main demands of the sector, offering long-term financing in a currency other than the euro, such as the dollar.
The Official Credit Institute (ICO) has designed and launched for the first time a comprehensive product catalog to support the internationalization of Spanish companies.
To cover these needs, three lines of action are contemplated: credits to promote exports at all terms, short, medium and long; financing for investments abroad; and finally, international guarantee instruments.
one. Export credits
The ICO offers two products to finance exports through the financial entities that collaborate with the ICO Mediation Lines: both in the short, medium and long term.
The lineICO Exporters-Short Term It allows Spanish companies that export to obtain liquidity through the advance of the invoices obtained for the sale of their goods and services abroad. Through this line, you can anticipate up to 100% of the amount of the invoices that have an expiration date of no more than 180 days.
The new line ICO Exportadores-Medium and Long term has been approved for complete the financial needs of exporting companies.
It is a novel product in several aspects. On the one hand, two types of credit are defined: buyer credit and supplier credit, which allows financing to be obtained both for the Spanish company that sells its products or services and for the foreign company that purchases them.
Additionally, under this line, the ICO provides financing both in euros and dollars, by virtue of the agreements signed with the Andean Development Corporation (CAF), and with the European Investment Bank (EIB). The destination of the exports to be financed under this line will be the geographic scope of action of CAF and the EIB.
Under this line, companies can obtain loans with an amount of up to 20 million per customer, if the financing is in dollars, and up to 25 million if it is in euros.
2. Financing to promote international investments
The new product catalog designed by the ICO also includes two products to boost investments by Spanish companies abroad.
The lineICO International It offers financing through the financial entities that collaborate with the ICO Mediation Lines, with long amortization periods that can go up to 20 years, to companies that carry out investment projects in other countries. This line allows financing both productive investments and working capital needs.
Likewise, FOND-ICO Infraestructuras, a venture capital fund managed by Axis, the Venture Capital Company 100% owned by ICO, has adapted to expand its scope of action to finance international projects. Through this fund, financing is offered to companies that develop infrastructure projects through equity investments, subordinated debt and participative loans. These projects may be carried out, both in Spain and abroad.
3. International guarantees
Finally, the ICO offers international guarantees, aimed at supporting Spanish companies that submit to large international tenders or awards.
In summary, this comprehensive product catalog launched by ICO is ambitious in terms of designing external financing instruments. And it is aligned with the best financing practices developed by the majority of international public financial institutions specialized in "Export-Import".
Both due to the potential of beneficiary companies, as well as by definition of products and adequacy of financial conditions, this catalog will contribute to facilitating the financing needs of Spanish companies that approach their exit abroad.