- The ICO makes available for the first time to Spanish companies, a complete catalog that covers all the company's international financing needs: debt, capital or “quasi capital” and guarantees.
- Three types of instruments are collected: export credits, both short and medium and long term; financing to make investments abroad and international guarantees.
- This new catalog also responds to one of the main demands of the sector, offering long-term financing in currencies other than the euro, such as the dollar.
The Official Credit Institute (ICO) has designed and launched for the first time a comprehensive catalog of products to support the internationalization of Spanish companies.
To meet these needs, three lines of action are contemplated: credits to encourage exports at all terms, short, medium and long; financing to make investments abroad; and finally international guarantee instruments.
one. Export credits
The ICO makes available through the financial entities that collaborate with the ICO Mediation Lines, two products to finance exports: both short, medium and long term.
The lineICO Exporters-Short Term It allows Spanish companies that export to obtain liquidity through the advance of invoices obtained from the sale of their goods and services abroad. Through this line you can anticipate up to 100% of the amount of invoices that have an expiration date not exceeding 180 days.
The new line ICO Exporters-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 obtaining financing from both the Spanish company that sells its products or services, and the foreign company that acquires them.
Additionally, under this line, the ICO provides financing in both euros and dollars, under the agreements signed with the Andean Development Corporation (CAF), and with the European Investment Bank, (EIB). The destination of exports to be financed under this line will be the geographical scope 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.
two. Financing to encourage international investments
The new product catalog designed by the ICO also includes two products to boost the investments of Spanish companies abroad.
The lineICO International It offers financing through the financial entities that collaborate with the ICO Mediation Lines, with long repayment terms that can reach 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 Infrastructure, the venture capital fund managed by Axis, the Venture Capital Company 100% owned by the ICO, has adapted to expand its scope to finance international projects. Through this fund, financing is offered to companies that develop infrastructure projects through equity interests, subordinated debt and participatory loans. These projects may be carried out, both in Spain and abroad.
3. International guarantees
Finally, ICO offers international guarantees, aimed at supporting Spanish companies that are submitted to large international tenders or awards.
In summary, this comprehensive catalog of products launched by the ICO is ambitious in terms of the design of external financing instruments. And it aligns with the best financing practices developed by the majority of international public financial institutions specialized in “Export-Import”.
Due to the potential of beneficiary companies, as well as by definition of the products and adaptation of financial conditions, this catalog will help to facilitate the financing needs of Spanish companies that address their exit abroad.