Examples of global solutions and cases
- Framework agreements placed in the insurance market for a number of international banks through which they regularly insure exposure to Letters of Credit, Guarantees, Bills of Exchange and Promissory Notes.
- The CPRI-team have since the implementation of Basel II structured and placed substantial standalone L/C transactions including in excess of USD 100m in Iraq for the finance of Power investments.
- Bank-to-bank loan agreements where the use of proceeds is stipulated as trade finance.
- Import financing facilities where sellers to the borrower are paid at acceptance of their receivable.
- Through framework agreements and standalone contracts, substantial volumes of cover placed for both private and sub-sovereign counter-parties in respect of the sale of refined and crude oil products predominantly in emerging markets.
- Syndication of guarantees behind banks for the benefit of releasing counterparty / client internal limits, RWA release and commercial underwriting capacity/silent distribution. In Q4 2015 alone the team were able to achieve the release of in excess of USD 1bn of risk weighted assets this way for a large global energy bank.
- A 21-market syndication covering in excess of USD 325m of non payment and political risk on a risk on a sub-sovereign counter-party in Africa over 10 years. After which the Exporter successfully financed the insured amount through a syndication of three international banks on the back of the insurance policy.
- A 12-market syndication covering a term loan of USD 220m for a private counter-party in Brazil.
- Structured pre-exprt finance, with offshore revenues secured from superior quality off-takers.
- Repurchase Agreements, with banks taking ownership of commodities which are then regularly resold to the seller (Borrower) at fixed intervals.
- Large trader RCFs. For banking clients, the team have arranged cover for several of the annual revolving credit facilities under which some of the large international trading and commodity houses are borrowers. In addition, Gallagher have just concluded a credit insurance transaction for one of Australia’s largest FI’s to manage the FI’s overall exposure to a large domestic energy Oil & Gas borrower (corporate unsecured syndicated facility). The principal benefit was to allow the bank to manage availability under its existing borrower limit, thereby enabling the bank to plan for a larger facility with the borrower/client.
Return to Credit and political risk