Refreshingly Easy: Smaller Investments, Greater Security
The Mioni success story shows how even smaller investments of between EUR 2 and 10 million can obtain attractive ECA-covered financing. In 2024, the Serbian beverage producer, which belongs to Delta Holding, purchased a new PET bottling plant for mineral water from the German Krones AG for around EUR 6.3 million. In the following interview, Sanin Merdžan, Head of Export Finance Sales at RBI, and Saša Mićić, CEO of Mioni, explain how RBI's straightforward small ticket buyer’s credit solution supported the transaction with a EUR 5.6 million with an ECA-covered loan.
How did Mioni become aware of RBI’s small ticket buyer’s credit solution?
Saša Mićić (Mioni): We learned about the small ticket buyer’s credit during strategic discussions with the supplier Krones and later with RBI when it came to optimizing financing solutions for investments. We already knew RBI as a trustworthy partner from our long-standing cooperation with the Raiffeisen Group, particularly in the financing of the Delta Holding Group, and its expertise in export credit financing made it a logical choice.
What is the small ticket buyer’s credit? Can you give a brief overview of this solution?
Sanin Merdžan (RBI): The small ticket buyer’s credit is our solution for export financings covered by an Export Credit Agency (ECA) for loan volumes between 2 and 10 million euros. Most ECA-covered buyer’s credits for financing machinery and equipment imports are only available for higher volumes. With our offer, however, we have introduced a financing solution for smaller export transactions. Our potential customers or importers of capital goods can send a request to RBI and after a positive internal review they usually receive a financing offer within just 2-3 days.
What are the benefits for the parties involved and what is the role of the export credit agency?
Sanin Merdžan (RBI): Importers benefit from ECA-covered long-term loans for the import of capital goods. Exporters, in turn, can make a financing offer to their buyers and thus boost the sale of their products. By involving an export credit agency such as Euler Hermes, we obtain reliable risk coverage for potential political and economic risks. For the lender, this means repayment security. At the same time, the ECA cover enables more favorable credit terms and strengthens trust on all sides. So together we create a more secure financing structure. With the risk cover provided by the participating export credit agency, we can also offer our customers attractive terms and prices.
What kind of risks are mitigated with RBI’s buyer’s credit solution for smaller tickets?
Sanin Merdžan (RBI): The small ticket buyer’s credit reduces the risk of non-payment for the exporter. The exporter sells its products and benefits from prompt payment under the buyer’s credit after it has fulfilled the delivery terms in the export contract. For the importer, receiving a small ticket buyer’s credit reduces the liquidity risk of fulfilling its obligations to the exporter. The lender receives cover for commercial and political risk from the involved export credit agency.
What other options were considered and why did Mioni choose RBI’s services?
Saša Mićić (Mioni): Several factors influenced our decision in favor of RBI’s small ticket buyer’s credit, including ease of access, competitive terms and RBI's strong track record in similar transactions. We did look at other options, such as traditional bank loans, but the buyer’s credit for smaller tickets offered greater efficiency and lower risk by including Euler Hermes as ECA.
How did the financing affect Mioni's liquidity management?
Saša Mićić (Mioni): We have been able to significantly improve our liquidity management as we have created predictable and manageable repayment terms over five years with RBI’s small ticket buyer’s credit. This structure allows us to utilize internal resources more effectively for growth initiatives while maintaining a healthy cash flow.
How would you describe the process and the collaboration? Were there any particular challenges?
Saša Mićić (Mioni): The collaboration was extremely professional, efficient and transparent. The RBI team demonstrated a deep understanding of Mioni's business needs and supported us throughout the transaction. Thanks to their support in dealing with the ECA requirements, the loan agreement was finalized smoothly and on time.
Sanin Merdžan (RBI): A challenge in the transaction was the correct timing for the registration of the buyer's credit with the National Bank of Serbia, where all loans with banks outside Serbia must be registered. Thanks to the close coordination between RBI and Mioni as well as the local law firm that accompanied the transaction, we were able to finalize everything, and the loan was made available on time. So there were no delays in payments and deliveries.
Would you recommend RBI and its services to other companies?
Saša Mićić (Mioni): Yes. RBI's expertise combined with the advantages of the small ticket buyer’s credit is a reliable and efficient financing solution and reduces performance risks. Anyone who wants to optimize their financial strategies for long-term growth can really benefit from this partnership. With innovative financing solutions and access to international credit markets, RBI fits well with our expansion plans and can help us to improve our competitive position in the beverage industry. We look forward to further co-operation and future growth opportunities.