CIRR

The Commercial Interest Reference Rate (CIRR) scheme is a government-backed financial instrument that enables Dutch exporters to finance their international transactions at a fixed, competitive interest rate.

How it works.

• The applying export bank should be at least investment grade (i.e. BBB- or better).
• Through the Atradius DSB application form “Buyer Credit Insurance Policy”, the export bank must also apply for CIRR financing. Once the export bank's application is received, Atradius DSB will contact NWB Bank to check whether CIRR financing is available for the export transaction in question. This will usually be the case. Atradius DSB will issue a promise of cover to the export bank for both the financing policy and the CIRR financing.

Per the date that all cp's(conditions precedent) of the export loan are met, the following documents will be signed on the same day ('Effective Date'):

• Refinancing Agreement between Sector Bank and Export Bank. NWB Bank will release the CIRR rate';
• The recourse agreement and pledge deed for the export loan between export bank and Atradius DSB;
• The CIRR guarantee (the ekg) provided by DSB in favor of NWB Bank;
• The financing policy provided to the export bank by Atradius DSB.

NWB Bank provides the CIRR financing to the export bank on the specified drawdown date(s), regardless of any postponement of the drawdown dates under the export loan. This therefore involves a pre-agreed fixed drawdown schedule. In most cases, the CIRR loan will be refinanced as soon as the export credit has been fully drawn down. During the drawdown phase of the loan, the export bank may, if desired, exchange the fixed interest rate received from the borrower for a variable interest rate via Atradius DSB. To this end, the financing insurance is expanded to include a clause setting out this interest rate equalization. The bank can request this using the Financing Insurance form.

• In the refinancing agreement, the "CIRR rate" is equal to: CIRR -/- 35bps (EUR) or CIRR -/- 20bps (USD), plus a potential forward premium charged if draws occur after the Effective Date.
• Furthermore, the CIRR rate is not negative and NWB Bank does not experience extreme market conditions.
• NWB Bank does not charge a commitment fee or arrangement fee for CIRR financings.
• Non-payment by the debtor under the export loan does not create a right of suspension for the export bank under the refinancing agreement with NWB Bank.
• Any (i) deviation from the draw schedule or (ii) early repayment by the export bank to NWB Bank is subject to a market value offset by determination of breakage costs(make whole).

The cover commitment for the CIRR financing has a duration of six months. A first extension of this commitment for another six months is more or less automatic, with a second extension a reassessment takes place by default.