Export Bond Insurance

You are a French exporter and you would like to issue bonds within your export contracts. You would like bonds to be issued for your export contracts by French banks and subsidiaries or branches of foreign banks established in France and/or in an EU country, or by insurance companies.

Export Bond Insurance

Presentation

Export Bond Insurance protects the issuer, in the event of a call of the bond by a foreign buyer, for any reason whatsoever, against the risk of default or insolvency of the French exporter.

This insurance fits with:

  • All types of “traditional” surety bonds, except offset bonds
  • All currencies
  • All countries (except certain prohibited countries)
  • Bonds are guaranteed until full release, regardless the term of the bond

Benefits

For French exporters, Export Bond Insurance facilitates the setting up of bonds and allows them to develop their export revenue without incurring additional costs.

For banks, Export Bond Insurance makes it possible to take more commitments while limiting their risks.

How much?

The premium is payable quarterly in advance by the issuer and for each line, based on the amount of commitments reported, up to the percentage covered.

 

 

About the Export Bond & Working Capital Insurance

Four good reasons to take out Export Bond Insurance or Working Capital Insurance

For French exporters:

  1. Bpifrance Assurance Export facilitates the setting up of export bonds or working capital loans, and allows you to expand your export revenue.
  2. The process is handled by the bank from start to finish. You have no formalities to complete or additional costs to pay.

For banks:

  1. With the Bpifrance Assurance Export insurance, you can take more commitments while limiting customer-related risks (French exporter).
  2. You have greater flexibility in managing your commitments by choosing the cover rate and price.

How it works

On receiving your insurance request (amount of Bonds to be issued or Working capital loan needed), we analyse the requirements laid out in the request.

After completing our analysis, the application is submitted for a decision either to the Internal Committee (for delegations granted by the French State to Bpifrance Assurance Export) or to the Interministerial Committee which decides, on a case-by-case basis, on the terms of the insurance policy to be issued.

A notification of the amount covered is delivered to the company. The issuing or lending bank then provides Bpifrance Assurance Export with an approval request for the bonds to be issued /working capital loan to be insured, within the limit of the amount granted.

An approval setting forth the terms and conditions of cover is then delivered to the bank.

The issuer sends a monthly statement on the outstanding amount of the bonds, or the lending bank a statement on the drawdowns made on the covered loan. These statements trigger the invoicing of the premium.

Documentation

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