Expert Insights: Global Trends in Trade and Export Finance

The realm of global trade has grown increasingly unpredictable, marked by shifting trade routes, unknown business partners, and heightened risks. Evgeniya Sharkova and Sanin Merdžan discuss emerging trends in the international trade and export finance landscape and highlight why RBI is an ideal partner for local banks that want to support their corporate customers in this dynamic environment.

As international trade evolves amid shifting geopolitical landscapes, exporters often face uncertainty when dealing with unfamiliar importers and vice versa. “Local banks, especially in emerging markets, may not always have the resources to fully address all of their client’s global business needs,” Evgeniya Sharkova, RBI Head of Trade Finance Sales, points out. “That’s where we step in and empower local banks with our refined trade finance instruments, our expertise, as well as our extensive network. With over 2,000 partner banks worldwide, we are able to issue and advise trade finance instruments globally.“

This year RBI was recognized as the most active confirming bank by EBRD (European Bank for Reconstruction and Development) worldwide. “That's one of the most prestigious awards you can get in the trade finance world for doing business in developing markets and we are proud of this achievement,” Evgeniya Sharkova states. “Local banks in emerging markets can benefit from our trade finance expertise and support their clients’ international business. Due to the ongoing geopolitical turmoil, we expect a rise in the use of credit mitigation solutions, like letters of credit,” she explains.

“Yes, we are also seeing this with long-term financing,” confirms Sanin Merdžan, Head of Export Finance Sales. “Geopolitical challenges are making risk mitigation increasingly important, and this is where we can leverage our strong network of export credit agencies (ECAs), providing importers and their local banks with ECA-covered financings that usually cover up to 100% of commercial and political risks in the importers’ countries.” RBI provides the export finance solutions starting from EUR 5 million onwards  from its Group’s head office in Vienna, collaborating with various export credit agencies (ECAs) across Europe and beyond. “Each ECA has its own unique characteristics, and our years of experience with different institutions allow us to offer valuable expertise to our customers.”

“Especially with the product OeKB Shopping Line we are seeing an increase in business with importers and their local banks in emerging markets,” Sanin Merdžan explains. Shopping Line is a flexible financing solution  for the purpose of financing imports of goods from Austrian exporters to foreign buyers and their banks which is guaranteed by the Austrian export credit agency OeKB. The product allows the importers and their banks to bundle purchases from multiple Austrian companies into a single financing contract. “We have been providing our customers with the OeKB Shopping Lines very successfully over the last years,” Sanin Merdžan states. 

“We also observe that more banks are trying to offer sustainable trade finance solutions to their corporate customers, and that's where we can support them,” Evgeniya Sharkova explains. RBI is firmly committed to sustainability and has established itself as an ESG pioneer in Central and Eastern Europe. “We are proud to offer our trade finance solutions in a sustainable format, helping to accelerate the green transition of our corporate and institutional clients.”

Sustainable trade finance isn’t limited to financing of wind power plants or the purchase of photovoltaic panels. Many other business cases have a positive impact on climate change or a positive social impact. Among others, RBI facilitates activities related to waste management, green energy, water management, the circular economy, green buildings, and healthcare. 

“Together with our long-standing partner, the European Bank for Reconstruction and Development, we also discussed this topic at the ICC Austria’s (International Chamber of Commerce) Trade Finance Week in May this year and explored how commercial and development banks approach sustainable trade finance, where our strategies align, where they differ, and how both perspectives can guide clients on their green transition journeys,” she recounts.