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Yves-Marie Gayet was named global head of international trade and transaction banking at Crédit Agricole CIB in September, a move that saw him return to France following a lengthy stint in Brazil.

Most recently, he had served as the bank’s head of Latin America, and before that, as senior country officer for Brazil.

In this interview, the latest in GTR’s Trade Leaders series, Gayet outlines how supply chain disruptions are opening up new trade corridors and financing opportunities, the bank’s digitalisation efforts in the wake of France’s legislation on digital trade documents, and the strong performance of the lender’s supply chain finance (SCF) business despite market challenges.

 

GTR: How has Crédit Agricole’s trade finance offering evolved in recent years? Has there been a shift in the products it provides, such as letters of credit, revolving credit facilities and supply chain finance? What factors are driving these changes?

Gayet: Within our trade finance division, demand for traditional products continues and has been strong in light of the current political tensions. However, we also see an important shift into open account transactions and working capital solutions, which are significantly expanding as cash generation becomes critical with high interest rates.

The prioritisation of sustainable finance and digitalisation are also key trends and are really starting to transform the trade finance landscape.

We provide all types of letters of credit (LCs), guarantees, as well as supply chain finance and receivable finance solutions, from discounting single names to portfolios. Open account is growing, definitely, and there has been noticeable uptake of such products in the Americas and other regions as well.

 

GTR: How is the bank’s trade finance portfolio changing in terms of sectors and geographies?

Gayet: Macro-economic and geopolitical events are bringing important changes in trade volumes and patterns, while shipping disruptions are likewise impacting the movement of goods and creating supply chain shortages. In turn, we are seeing a shift in flows and new trade corridors are emerging.

Europe is Crédit Agricole CIB’s (CACIB’s) main base, so trade finance flows between markets in Europe and those in Asia or the Americas are a key area of focus. We also see growing levels of business between the Americas and Asia, and flows are increasing between India and Europe. The bank has been developing its trade finance client base using its extensive network.

In terms of sectors, in the context of the climate emergency, CACIB is amplifying its commitment towards the energy sector and the energy transition. We are strengthening our resources towards renewable energy and positioning ourselves to lead large infrastructure and transition energy projects requiring large volumes of guarantees. Our trade finance portfolio has grown in sectors such as construction, transportation and mobility, and the tech sector.

 

GTR: What is the bank’s activity in the commodity trade finance sector? Does appetite remain strong?

Gayet: We continue to provide commodity trade finance solutions. This is a sector where clients are starting to take some interesting positions regarding the energy transition, and we’ve observed a consolidation of activity among the biggest players in the market. Overall traders are cash-rich and, in a high interest rate environment, they are less likely to use bank lines. Still, they are important borrowers to finance flows.

 

GTR: In the past year, the UK passed the Electronic Trade Documents Act (ETDA) and France has now implemented a similar law. What impact does such legislation have on Crédit Agricole’s trade finance business and its use of digital trade documents?

Gayet: Our trade finance business is already benefitting from digitisation, which helps streamline processes internally – for instance, compliance controls – but also communication with clients.

CACIB launched its Optim trade platform nearly two decades ago and has improved it over the years.

The bank was also a founding member of trade finance platform Komgo. In early 2024, CACIB became the first bank to offer Komgo Konsole APIs to Global Trade Corporation users. This innovative solution is fully integrated with our back-end systems and complements the existing Swift MT798 connectivity between corporates and banks. The solution is not largely used by all of our clients today, but activity is increasing.

We are preparing to test more document digitisation solutions. Standard and interoperable solutions will be key, so banks, fintechs, clients and professional associations such as the ICC and the Digital Container Shipping Association , are pushing adoption within the wider ecosystem. In France, the bank is an active member of a working group that sought to finalise the French version of UNCITRAL’s MLETR.

 

GTR: SMEs struggle to source trade finance and banks typically report being limited in their ability to boost access, given regulatory requirements. What is the bank’s approach to this market segment?

Gayet: The trade finance gap is estimated at US$2.5tn and this trend is highly emphasised for SMEs. Under the current rate environment, with the high cost of borrowing, financing has become even more expensive for SMEs. There’s also the consideration of the bank’s risk capital and capital considerations with many SMEs not meeting the threshold for financing due to limited credit history. Sometimes it is difficult to assess their credit-worthiness.

Without access to capital, SMEs can face cash shortages and this limits their ability to meet demand and fulfil orders. The way we approach the issue is by really pushing our supply chain finance offering with products that allow the SMEs to receive early payment on their invoices based on the credit quality of their stronger clients.

Our SCF business has performed strongly in recent years, and we have developed some interesting programmes. Invariably, we have seen a bit less utilisation of some of those SCF programmes in the wake of high interest rates. New disclosure rules in the US have also had an impact, making some clients slightly reduce the size of their programmes. But it’s still an important and growing piece of our trade financing.

Within a wider Credit Agricole Group perimeter, we are also active in co-operating with our SME unit to share expertise and support this client segment’s needs.

 

GTR: How is Crédit Agricole working to support clean energy sectors? Is it boosting its use of sustainability-linked financing? And, in a similar vein, is the bank reducing its exposures to oil and gas producers and traders?

Gayet: For many years, CACIB has been committed to sustainable development. It was the first French bank to sign the Equator Principles in 2003, so it’s been a long journey, a long history, and we’ve been a pioneer in the green bond market with the arrangement of public transactions since 2012. The bank has a strong climate strategy and has vowed to stop financing any new fossil fuel extraction projects and adopted a selective approach for energy companies engaged in this transition.

It’s not only commitments; the bank is also taking action. Financing emissions linked to the oil and gas sector, which mainly includes exploration and production, were reduced by 63% between 2020 and 2023, with a target of a 75% reduction by 2030.

We are supporting clients by developing new products, such as green LCs or guarantees, specifically tailored for transactions involving clean energy projects or sustainable goods. Secondly, by offering advisory within the clean energy sector, for example, helping clients navigate the complexity of trade finance. The last level, of course, is training our staff to better understand those topics. It’s a subject that progressed in other areas of the bank initially. The maturity of green bonds came first, sustainability-linked loans and bonds second, and now is the time for trade finance and day-to-day banking.