Interest rate stabilization
Allow French exporters' customers to obtain a fixed borrowing rate from banks.
The Benefits of Interest Rate Stabilization
For the exporter
- Offer the foreign buyer advantageous financing conditions
- Allow the buyer to have visibility on the cost of financing the project
For the bank
- Cover against variations in resource costs, determined on the basis of variable reference rates, to which is added a margin known as the retroceded margin. Bpifrance Assurance Export covers or receives the difference between the stabilized rate and “the resource rate + the retroceded margin”
Our Interest Rate Stabilization Solution
The essentials to know
The stabilization procedure offers banks/exporters the possibility of attaching a fixed rate to the export credit insured by Bpifrance Assurance Export, thus giving the buyer more visibility on the cost of financing the project.
The Stabilized Rate can take 2 possible values depending on the scenario of the underlying export contract:
- Commercial Interest Reference Rate (CIRR): minimum fixed rate at which officially supported export credits may be granted under the Arrangement, set monthly by the OECD based on the yield of the highest-rated sovereign bonds plus 100 basis points. It is available for a number of currencies, including the Euro and the US Dollar.
- Adapted Rate: communicated by the DG Trésor at the request of the exporter or the bank, this rate is calculated ad hoc, when a project presents particular specificities. For contracts
- of an amount greater than €500 million,
- or a repayment period of more than 10 years
- or with a duration of execution exceeding 4 years as well as
- complexes such as project financing, ships, etc.,
For more information : Interest rate stabilization procedure | Bpifrance
Eligible beneficiaries
- Accessible at the exporter's request for all export operations whose financing benefits from credit insurance coverage by Bpifrance Assurance Export.
- European credit institutions (including subsidiaries and branches established in the European Union of state credit institutions that are not members of the European Union) with approval from Bpifrance Assurance Export
Conditions for Interest Rate Stabilization
- Export credits covered by credit insurance by Bpifrance Assurance Export
- Granted on a case-by-case basis for project financing, the nuclear sector or for sales from a parent company to its subsidiary.
- Exclusions from operations covered under the pure and unconditional guarantee, the strategic projects guarantee or the internal guarantee
Small volume contracts and those carried out by mid-sized companies/SMEs (with a turnover of less than €150 million and not subsidiaries of large groups) can benefit from more advantageous financing conditions.
Need help? Contact the Institutional Activities department: dai@bpifrance.fr
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Test the eligibility of your project or request to be contacted by an international business manager
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