RMB structures a unique export guarantee facility with ECIC South Africa

The ECIC and FirstRand Bank (FRB), parent company of RMB, signed a multi-currency guarantee facility equivalent to US$200-million under a risk participation agreement.  The product is unique as the ECIC, which traditionally provides export credit insurance, has for the first time agreed to share the risk of a number of South African corporates’ export guarantees with a bank. The ECIC and First Rand Bank will share the default risk on a portfolio of South African corporates’ export guarantees which have been originated by FRB. The three-year facility, which has an option to be extended, is a 50/50 risk sharing arrangement that will enable the ECIC to match FRB’s undertaking in every transaction.

For more information, please read the attached press release below.