REPUBLIC BANK: BANKING FOR BUSINESS IN CUBA

Oficina 308, Edifico Jerusalén,

Monte Barreto

3ra. Avenida e/ 78 y 84, Miramar

Tel: (537) 204 6800

Presented by: Roopnarine Oumade Singh

Republic Bank RepresentativeOffice in Cuba

• Commenced operations in May 2002

• RBL provides trade finance and bank services to exporters to Cuba

• Since 2002 RBL has financed more than US$2.2B of exports to Cuba

• More than 30 outstanding credit lines for:

– Local banks

– Local companies

Republic Bank RepresentativeOffice in Cuba

Banking services:• Collections from Cuban banks • Advising L/C • Confirming L/C• Issuing L/C taking as security L/C opened by local banks

(back to back)

Trade Finance: • Discount of letters of credit• Discount of bills of exchange and promissory notes• Commitments to discount

Discounting a Bill of ExchangeExporter signs Commercial Contract with Importer

Exporter ships merchandise and sends shipping

documents and Bill of Exchange to Importer

Importer uses shipping documents to receive

merchandise and accepts the Bill of Exchange

At this point RBL discounts the Bill of Exchange

Exporter receives the discounted value of the Bill of

Exchange less a retention held by RBL

Once RBL receives payment on the maturity date, the

full amount of the retention is paid to the exporter

Discounting a Letter of Credit (L/C)

Exporter ships merchandise and sends shipping

documents to RBL. RBL sends shipping documents to

Issuing Bank who then reviews shipping documents

Exporter signs Commercial Contract with Importer

Importer sends orders to Issuing Bank (or Cuban

Bank) to open Letter of Credit in favour of Exporter

Issuing Bank issues L/C as per instructions from

Importer. RBL advises the L/C

Discounting a Letter of Credit (L/C)

If all shipping documents are in order, the Issuing

Bank issues a SWIFT message confirming the amount

to be paid at the maturity date

At this point RBL can discount the L/C

The Exporter receives the discounted value of the L/C

minus a retention that is held by RBL

Once RBL receives payment on the maturity date, the

full amount of the retention is paid to the exporter

Main RBL credit lines in Cuba

Company Industry

BFI Financial Services (Bank)

ETECSA Communications

TRD Distribution (Retailer)

CIMEX S.A. Distribution (Retailer)

Moa Nickel, S.A. Manufacturing (Nickel)

Bucanero S.A. Manufacturing (Beers)

CUBARON Manufacturing (Rums)

MCV Comercial Distribution (Vehicles)

BICSA Financial Services (Bank)

•Credit lines > $70M

•Credit terms of up to 360 days

CONTACT DETAILS

• Roopnarine Oumade Singh

Email: roumadesingh@republictt.com

Phone: 625 3617 Ext. 3410

• Davi Samaroo Singh

Email: dsamaroosingh@republicaribe.com

Phone: (537) 204 6800