Slovenska izvozna in razvojna banka (SID Banka)
About SID Bank
SID Bank (SID – Slovenska izvozna in razvojna banka, d.d., Ljubljana) is a promotional development and export bank 100% owned by the Republic of Slovenia. With our banking and insurance services we promote sustainable development and improve the competitiveness of the Slovene economy.
SID Bank was established in 1992 as Slovene Export Corporation (Slovenska izvozna družba, d.d., Ljubljana) with the aim of providing insurance and financing of export for Slovene companies. Since then we have grown and evolved in step with development of Slovene economy. SID Bank is the parent company of SID Bank Group, which provides its customers a wide range of services for promotion of competitiveness in international business cooperation.
The operations of SID Bank are based on a clear strategy and business model deriving from long-term development documents of the European Union and the Republic of Slovenia. The Republic of Slovenia provides long-term stable operations for SID Bank to carry out its transactions and activities in order to pursue the long-term development orientations of the Republic of Slovenia and the European Union.
As the sole shareholder, the Republic of Slovenia is responsible irrevocably and without limitations for SID Bank’s liabilities deriving from the transactions concluded during the pursuit of activities from Articles 11 and 12 of the Slovene export and development bank act (ZSIRB). If SID Bank fails to settle its due liabilities to a creditor at its written request, such liability should be immediately settled by the Republic of Slovenia at the creditor's request. This arrangement allows SID Bank to borrow on financial markets without having to obtain a guarantee by the Republic of Slovenia for each borrowing transaction.
SID Bank acquires most funds through borrowing on the international financial markets and transmit them to the economy in repayable forms.
The mission of SID Bank: We develop, provide and promote long-term financial services designed to supplement financial markets for the higher competitiveness of economy, creating new jobs and sustainable development of Slovenia.
As the national promotional development and export bank, we complement commercial banks with long-term funds and other financial instruments in the area of market gaps. Financing is available to small and medium sized enterprises, for the internationalization of operations of Slovene companies, as well as for developmental, environmental, regional, infrastructural and other projects, which strengthen the Slovene economy.
We acquire most funds through borrowing on the international financial markets on our own behalf and for our own account, as well as with the guarantee of the Republic of Slovenia. Possibility of this type of borrowing provides Slovene economy an opportunity to acquire competitive financial resources, which ensures directly or indirectly support of development and penetration onto foreign markets.
As the national export credit agency, on behalf and for the account of the Republic of Slovenia, we provide export credit and investment insurance, thus reducing risks of Slovene companies when operating on foreign markets.
Share capital: EUR 300,000,090.70
Number of ordinary registered no-par value shares: 3,121,741
Equity on 31 December 2017: EUR 409.9 million
Audited book value per share on 31 December 2017: EUR 132.08
SID Bank (SID – Slovenska izvozna in razvojna banka, d.d., Ljubljana; short: SID banka, d.d., Ljubljana) operates as a national promotional development bank, and as authorized Slovene export-credit agency (ECA), which provides non-marketable insurance on behalf and for the account of the Republic of Slovenia.
SID Bank is the successor of Slovene Export Corporation, Inc., Ljubljana (Slovene: Slovenska izvozna družba, d.d., Ljubljana), which was founded on 22 October 1992 as a special private-law financial institution for export insurance and financing.
At the end of 2006 the company acquired license of the Bank of Slovenia and was transformed to a specialized bank for promotion of export and development.
On 28 July 2008, the General Meeting of Shareholders adopted a Decree on transfer of minority shareholders' shares to the majority shareholder (the Republic of Slovenia). The Decree on transfer of shares was entered in registry on 18 September 2008. The Republic of Slovenia has thus become the sole shareholder of SID Bank, consequently fulfilling the condition for the Slovene Export and Development Bank Act, which was adopted on 23 May 2008 by the National Assembly.
SID Bank Group
SID Bank Group is comprised of:
1. Controlling company
SID Slovenska izvozna in razvojna banka, d.d., Ljubljana. (SID banka, d.d., Ljubljana)
2. Subsidiary companies
SID Prva kreditna zavarovalnica d.d., Ljubljana, (SID - First Credit Insurance Company Inc., Ljubljana), in which SID Bank holds a 100% ownership share.
3. Joint ventures
PRVI FAKTOR, faktoring družba, d.o.o., Ljubljana, Slovenia (in liquidation), a factoring company in which SID Bank holds a 50% ownership share and which has three affiliated companies:
PRVI FAKTOR d.o.o., Zagreb, Croatia (in liquidation)
PRVI FAKTOR - FAKTORING d.o.o., Beograd, Serbia (in liquidation)
PRVI FAKTOR d.o.o., Sarajevo, Bosnia and Herzegovina (in liquidation)
4. Centre for International Cooperation and Development, Ljubljana, public institute for business and entrepreneurial consulting
SID Bank is a member of several international organizations of financial institutions, which operate in same or similar areas as SID Bank (mainly development banks, other financial institutions and export-credit agencies). These financial institutions reduce the risks they are daily exposed to through exchange of information and other means of cooperation. SID Bank fosters intensive contact and good relations with numerous diverse international financial institutions, development and commercial banks, insurers and re-insurers.
SID Bank participates in the following international associations
- European Association of LongTerm Investors (ELTI)
- European Association of Public Banks (EAPB)
- Network of European Financial Institutions for SMEs (NEFI)
- Berne Union
Beside intensive cooperation in international organization SID Bank also maintains and develops close bilateral cooperation with numerous development banks, export-credit agencies and other financial institutions.
SID Bank is a national promotional development bank authorised to render long-term financial services that complement the market in various areas as laid down by the Slovene export and development bank act (ZSIRB), which are important for Slovenia’s sustainable development.
The fundamental activity pursued by SID Bank is funding market gaps, such as:
- development of small and medium enterprises and entrepreneurship,
- research, development and innovations,
- environmental protection, energy efficiency and climate change,
- international business transactions and international economic cooperation,
- regional development,
- economic and public infrastructure.
SID Bank renders all financial services in order to generate direct or indirect added value for the users of such services in line with the purpose and goals of individual transactions without pursuing the goal of generating maximum profit. During the pursuit of its activities, it does not pose competition to other financial institutions on the market. To achieve the goal of non-competition, SID Bank also applies the principle of equal access or non-discrimination of all users of the SID Bank's financial services and the transparency of the services provided, compliance of operations and operating results.
Areas of Financing
The financial services rendered by SID Bank support the four main purposes of development:
The Development of a Competitive Economy and Internationalization
- Financing of growth and development of small and medium sized enterprises.
- Financing of projects in all stages of development of large companies in the following areas: research, development and innovation; environmental protection; concurrent regional development; employment and qualification.
- Financing of internationalization of business transactions of companies of all sizes, especially small and medium sized enterprises: exports of goods and services, investments abroad.
The Development of a Knowledge Society and Innovative Entrepreneurship
- Financing of research, development, innovation and new technologies, which result in new or substantially improved products, services or processes, with the aim of reaching higher competitiveness and a higher value added, with a special emphasis on innovative entrepreneurship.
- Financing of education, especially with the aim of promoting and improving the level of education, acquisition of specific knowledge and knowledge management.
- Financing of educational infrastructure, especially adequate spatial infrastructure and equipment needed for the pursuance of educational processes.
The Development of an Environmentally Friendly Society and Production
- Financing of environmental protection, especially the protection of clean water, discharging of waste water or supply of drinking water, waste management, reduction of air pollution, reduction of noise or other adverse environmental effects, land redevelopment and environmental measures in relation to traffic and transport, etc.
- Financing of renewable energy sources, such as solar power, power from biomass and biogas, geothermal energy, wind power and hydropower.
- Financing of energy and material efficiency, especially measures which improve energy efficiency of business premises and residential property.
- Financing of environmentally friendly production or products which contribute in innovative ways to prevent or reduce environmental pollution or to increase the material efficiency of production.
Regional and Social Development
- Financing of infrastructure in the areas of: telecommunications, traffic, sport, tourism, culture, healthcare, etc.
- Financing the renewal of construction or residential property in specific areas, such as non-profit residences, residences for the youth, nursing homes and assisted living facilities, especially when they include energy efficient and environmentally friendly measures.
- Financing employment preservation and increase, with education, specialized qualifications and knowledge needed for growth of companies and re-training of employes.
Who is eligible for financial resources from SID Bank?
Companies of all sizes, private entrepreneurs and other private individuals, who are pursuing a professional or trade activity, as well as research and educational institutions, municipalities and other legal persons governed by public or private law and established in the Republic of Slovenia.
Companies and other legal entities established outside of the Republic of Slovenia, who are buyers of Slovene goods or services, or hold a majority ownership in a company from the Republic of Slovenia.
How to obtain financing from SID Bank?
The majority of SID Bank's financing is available through commercial banks, which cooperate with SID Bank. In some cases, when SID Bank's financing cannot be obtained through commercial banks, the interested company or other legal entity, which meets all conditions and whose project corresponds to the intended purposes of financing, may contact SID Bank directly.
Terms of financing for final beneficiaries
SID Bank's financing is long-term; ranging from 24 months up to 20 years, usually including a several months moratorium on the principal, as well as other individual terms and conditions in accordance with the purposes.
Interest rates are determined by a range that is downward limited by the EU rules concerning state aid and upward limited by commercial interest rates.
SID Bank's funds may be used to finance up to 85 percent of costs directly related to the project, including investments into tangible and intangible assets, as well as other costs, in accordance with SID Bank's terms and policies. Funds may be combined with EU funds or other public funds if there are no such limitations due to other agreements on the use of public funds.
As an authorized export-credit agency (ECA) SID Bank provides insurance for international commercial transactions against non-marketable risks on behalf of the Republic of Slovenia and for its account as its agent.
The funds required for the effective provision of insurance operations under the Law on Insurance and Financing of International Business Transactions (ZZFMGP) are provided to SID Bank by the Republic of Slovenia in the form of contingency reserves that are used to settle liabilities to the insured entities (claims payout) and to cover losses deriving from such transactions. Contingency reserves are created primarily from premiums, fees and commissions, recourse from paid claims and other revenues generated by SID Bank from insurance and reinsurance against non-marketable risks. If the claims incurred cannot be settled from the reserves indicated, funds for the payout are provided by the Republic of Slovenia.
Export Credit Insurance
- Supplier Credit
- Foreign Buyer Credit Insurance
- Foreign Bank Credit Insurance
- Purchase of Receivables Insurance
- Post-financing of L/C Insurance
Pre-Export Credit Insurance
- Designated Credit Insurance
- Credit Line Insurance
- Equity insurance
- Insurance of shareholders' loans
- Insurance of non-shareholders' loans
- Insurance of Bank Service Guarantees
SID Bank insures exports and investments abroad against non-marketable risks, which comprise commercial and non-commercial risks of the nature and level which the private (re)insurance market is reluctant or unable to accept. By insuring these risks we offer exporters, investors and other participants in international trade a solution to reduce non-payment risks, thus creating conditions for stable business on the international level.
Non-commercial risks are risks on which the policy holders and debtors have no influence and are related to the country risk of an importing country or host country of the investment. They include:
- Public buyer risks (failure of repayment of a loan by the public debtor or a unilateral termination of an agreement by the public-law entity client).
- Political risks (wars, revolutions and general strikes, moratorium on payments, restriction of conversion or transfer, restriction of import, expropriation and other forms of expropriation).
- Natural disaster risks.
- Commercial risks
- Protracted default.
- Forced settlement and bankruptcy.
Export and Pre-Export Credit Insurance
Policyholder is the exporter, who insures the receivables related to the agreed upon payment delay, which enable the buyer to pay for the supplied goods and/or services in a specified period after delivery. The exporter can transfer the rights arising from the insurance policy to a bank (assignment), therefore ensuring more favourable financing conditions.
Foreign Buyer/Bank Credit Insurance
The buyer repays the exporter in full of advances and from the credit approved to the buyer by the exporter's bank. The object of the insurance are receivables arising from the buyer’s credit, with the policyholder being the bank which grants it. Several variations are possible with this type of insurance, such as a credit line, the purchase of receivables, documentary credit, etc.
Purchase of Receivables Insurance
Post-financing of L/C Insurance
Designated Credit Insurance
Credit Line Insurance
The Slovene investor can insure against various non-commercial risks:
- Funds invested into a company, other legal entity or business unit in the host country of the investment.
- Funds invested into financial institutions in a foreign country on behalf of companies, other legal entities or business units in a foreign country.
- Other investments expressed in monetary value, which are the investors' contribution to investment projects and are in the form of tangible and intangible property, especially equipment and rights, such as: patents, licenses, know-how, and brand names.
Insurance of shareholders' loans
The parent company can insure its loans to affiliates against non-commercial risks.
Insurance of non-shareholders' loans
Banks can insure loans to affiliated companies of Slovene corporations in foreign countries against both commercial and non-commercial risks.
Insurance of Bank Service Guarantees
In international business, particularly in the export of equipment, performance of investment work, etc., it is an established practice for the buyer to require from the exporter adequate guarantees to cover risks on the exporter's side (i.e. a bid bond, a performance bond - for the good execution of work, an advanced payment bond, a warranty bond, a retention money bond). Guarantees, issued mostly by banks, are issued in content and form required by the beneficiaries and therefore efficiently protect them against commercial risks, and must be provided by the exporter. The exporter and exporter's bank face certain risks in connection to guarantees in international trade, which can be insured by SID Bank.
Insurance of exporter
The exporter can be insured against unfair calling and calling of guarantees due to political and other non-commercial risks.
Insurance of guarantor
The exporter’s bank can be insured against the calling of guarantees for any reason.