TF strengthens Deutsche’s Q4 results

Deutsche Bank’s global transaction banking division has seen an increase in net revenues due to substantial growth in its trade finance products.

IADB's Trans-Pacific programme fills up

Another six countries are negotiating membership into the IADB’s Trans-Pacific Partnership to boost trade and investment between the US and Asia Pacific.

VEB considers new syndication

Vnesheconombank is potentially looking to raise a syndicated loan of up to US$1bn, according to market sources.

Labbat joins JP Morgan

Lillian Labbat has joined JP Morgan as managing director in its treasury services team.

Turkish wind farm gets German backing

Bayern LB has agreed a €39.125mn export loan to wind turbine developer Nordex to develop Turkish wind farm Zeytineli.

GTR reveals Best Deals 2011

GTR has whittled down a huge number of best deal submissions to under 30 winning transactions.

We hope that the selected deals reflect the diversity of the trade, supply chain and export finance market. The winning list includes transactions closed in various countries including Iraq, Azerbaijan, Angola, Guatemala and Ghana.

We also saw a wide range of sectors supported by the trade and export finance banking industry, including the financing of satellites, car ferries, telecoms equipment, radars, cocoa and cashew nuts, among many others.

StanChart acquires ETG

Standard Chartered has acquired a US$74mn minority stake in Tanzania’s Export Trading Group in a deal that values the company at over US$500mn.

Rand names new FI member

South Africa’s Rand Merchant Bank has appointed Cheri Manthe as senior relationship manager in its banks and development finance institutions team.

Bryant joins Deutsche's UK trade team

Jeff Bryant has joined Deutsche Bank as director within the trade finance UK team. He will be based in London.

US Exim approves loan for Saudi Quaryyah IPP

US Exim has approved its involvement in the Saudi Quaryyah IPP project in Riyadh.

Turkish importer gets JBIC backing

Turkish industrial importer and retailer Enka Pazarlama has signed a ¥15bn loan with the help of Asian banks and export credit agencies to purchase and export construction machinery from Japan.

JP Morgan mandated for Airbus deal

China Southern is in the process of finalising the purchase of an Airbus A380 with the help of JP Morgan and export credit agencies UK Export Finance, Coface and Euler Hermes.

Euro woes increase UK trade deficit

The UK’s trade deficit remains volatile as the latest data from the Office of National Statistics shows another rise in figures.

Viewpoint January 11, 2011

GTR editor Rebecca Spong looks forward to 2012 and asks what kind of New Year resolutions the market should be making.

Time to make resolutions for trade

Optimists are hard to find in the banking world as 2012 begins. There’s heightened job uncertainty, jittery markets and a big question mark over how the eurozone crisis will resolve itself.

But New Year is also a time for resolutions and figuring out a way of improving ourselves.

We at GTR have come up with a number of resolutions for the trade finance market; suggestions that could mean that the industry ends 2012 in a better state than it left 2011.

Regulatory issues: One thing we hear time and time again at conferences and roundtables is the need to inform clients of the impact of Basel III. Banks’ customers will need to understand why they are being charged more for their trade facilities.

Regulators may listen more to the arguments of corporates than the complaints of bankers.

Don’t try to be good at everything: The end of the global banking era was heralded by some last year. Perhaps a slightly over-dramatic stance to take, but there is definitely the need for banks to focus on their strengths and not try to provide every service or product in every region. We often hear warnings that bankers need to do business in regions and with risks they understand.

Ensuring senior management is aware of the relevance of your business: As the cliché goes, trade finance is the oil that keeps the wheels of trade turning. Trade finance is vital for world trade, particularly in the emerging markets. It is also a low risk fee-driven business that will keep generating regular income for your bank, in both the good times and bad.

Price risk correctly: The market itself has to also make efforts to ensure it remains a profitable and respected business. GTR often hears complaints of bankers not pricing deals in a way that actually reflect the risks involved.

Forget preconceived ideas on country risk: Reconsider what you think makes a good risk. The tables have turned in recent years, with growth stagnating in Europe and the US and markets in Brazil and areas of Africa booming.

Is 2012 the year to take a different approach when considering your country limits?

Development and aid: The need to finance deals that support the development of poorer countries might not be a top concern right now as people worry about where the next set of job cuts might happen. However, perhaps there is a way that banks work with multilaterals or development banks in supporting the growth of poverty-stricken nations, while also generating shareholder return?

The reputation of the banking industry has been sullied in recent years – perhaps it is time to demonstrate the social value banks can bring to the world?

The latest data from Dealogic reveals that the final quarter of 2011 saw a significant dip in trade finance activity; no doubt a reflection of the wider market volatility.

However the first nine months saw almost record volumes of trade finance.

The market will need to make efforts to ensure it can return to the success of early 2011 and survive any current turmoil.

What other resolutions should the market make?

Are you feeling optimistic about the outlook for 2012?

Trade finance volumes hit new low

Trade finance activity fell to a new low in the fourth quarter of 2011, according to new data from Dealogic.

Just 137 deals were recorded in the final quarter of last year, the lowest level seen since Q1 in 2004 when just 113 deals were closed.