Data analyst Dealogic has revealed a drastic drop in global trade finance volume in its H1 results.
Trade finance volume reached US$51.7bn globally, a drop of almost 40% compared to the same period in 2009.
A low trade finance volume of bilateral loans is to blame for the drop, and if they are excluded from the results, then the global volume reached increased by over 40%.
Excluding bilateral loans, H1 2010 saw US$38.2bn committed to trade finance globally, up from US$26.9bn in the first half of last year.
While the total volume was down, the number of deals increased to 425, up from 369 in H1 2009.
The largest loan to sign in the first half of 2010 was Saudi Aramco Total Refinery and Petrochemical’s US$8.7bn facility for the construction of an export refinery in Jubail.
As a contrast to the fall in trade finance volume, global syndicated loan volume increased by nearly 30% to US$1.24tn, with the second quarter of 2010 reaching US$707.2bn, the highest quarterly volume since Q3 2008.
Both the metal and steel, and the utility and energy sectors led the way in increasing trade finance volumes, rising by 83% and 14% respectively.
French banks championed export credit agency-backed trade finance loans, with BNP Paribas ranking first with US$2.6bn, followed by Société Générale CIB with US$2.1bn.
Last Updated July 07, 2010
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