Trade finance falls short in 2011
Dealogic’s latest results reveal that global trade finance volumes have dipped by 6%, while Brazil and Turkey have generated the highest number of deals.
The results show that the global trade finance volume reached US$114bn in the first nine months of 2011, down 6% from the US$121.2bn recorded during the comparable 2010 period.
Volume in 3Q 2011 reached $40.4bn, down 29% from the record US$56.8bn raised in 3Q 2010.
Excluding sole-bank loans, volume reached US$89.4bn in the first nine months of 2011, marginally down from US$90.9bn during the same period in 2010.
Looking at market performance, the oil and gas companies accounted for 20% of trade finance volume in the first nine months 2011, which is down from 24% during the same period in 2010.
The metal and steel sector followed with a 10% share of the market and recorded the largest trade finance loan of 3Q 2011 with Rusal’s US$4.8bn facility.
The loan also represented the second largest trade finance loan of the first nine months of 2011, Dealogic reports.
For countries, excluding sole-bank loans, Brazil and Turkey tied for the largest number of deals in the first nine months of 2011 with 23 deals each.
Russia and Vietnam followed with 21 and 10 deals, respectively.
The volume of ECA-guaranteed deals was US$10.0bn in 3Q 2011, down slightly compared with US$11.6bn in the previous quarter.
Meanwhile, the pre-export loan volume totalled US$8.4bn during 3Q 2011, up 145% on the previous quarter.
This was boosted by September volume of US$6bn − the highest monthly total since July 2010.
HSBC topped the ECA-backed trade finance loan rankings with US$3.4bn, followed by BNP Paribas with US$2.7bn.
And finally, BBVA topped the global trade finance ranking, including sole bank loans, with an 8.6% share, while BNP Paribas followed with a 7.3% share.