News & Update on Trade Finance Across The Globe

Deutsche Bank appoints Atul Jain as head of Apac trade finance

Deutsche Bank today announced the appointment of Atul Jain as Head of Trade Finance and Trade Finance Flow – Asia Pacific, effective immediately. Based in Singapore, Mr. Jain will be responsible for leading the trade finance business in the region, and for driving the execution of the business’ strategy.

In his new role, Mr. Jain will report to Daniel Schmand, Global Head of Trade Finance, and Michael Dietz, Global Head of Trade Finance Flow. He will also regionally report to Lisa Robins, Asia Pacific Head of Global Transaction Banking.

Mr. Jain was most recently Regional Chief Operating Officer for Deutsche Bank’s Corporate & Investment Banking division and Global Transaction Banking business in Asia Pacific. Prior to this, he was Deutsche Bank’s Acting Regional Head of Group Strategy in Asia Pacific, and began his career in the U.S. with Deutsche Bank’s Global Corporate Finance business.

Source: https://www.finextra.com/pressarticle/70223/deutsche-bank-appoints-atul-jain-as-head-of-apac-trade-finance

Trade Financing Firm Vayana Network Raises $4M From IDG Ventures and Jungle Ventures

Pune based Vayana Network has received Series A funding of $4 million from IDG Ventures and Jungle Ventures. This follows an earlier round of investment in the company by Reliance Industrial Investments and Holdings Ltd (RIIHL) and couple of other investors.

Vayana Network is India’s largest technology based third-party B2B trade financing platform and has so far processed over Rs. 4,000 crores ($600 million) in financing via 9 lending partners (5 Banks and 4 NBFCs) across large, medium corporates and SMEs in India. Vayana was selected by GSTN as one of the 34 GST Suvidha Providers (GSP), to facilitate smoother transition by businesses to GST. The equity investment will be used to further strengthen its B2B trade financing network both in India and abroad.

Commenting on the latest round of funding, R N Iyer, Founder and CEO, Vayana Network, said “This funding comes at an exciting time with GST driving a digital invoicing ecosystem in India and in the backdrop of increasing velocity for trade based financing led by third party platforms globally. Our mission from day one has been to focus on designing the simplest possible process for corporates of all sizes and from different industries to avail short term financing for their buyers and suppliers. Our special focus on trade documentation has also enabled us to play an important role in GST regime. We plan on offering several value-added services for our clients to help them take advantage of the trade data.”

http://bwdisrupt.businessworld.in/article/Trade-Financing-Firm-Vayana-Network-Raises-4M-From-IDG-Ventures-and-Jungle-Ventures-/17-07-2017-122259/

Axis Bank launches digital invoice discounting platform, seeks govt push

Axis Bank launched its digital invoice discounting platform, Invoicemart, to improve access of funds to micro, small and medium sector enterprises (MSMEs). Invoicemart is a platform created by A.TREDS, a joint venture of Axis Bank, India’s third-largest private bank, and Mjunction Services, one of the largest B2B e-commerce company. Kalyan Basu, MD & CEO of Invoicemart thinks that digital factoring as a business can get a further boost if the government pushes the public sector MSMEs to get on the platform.

In November 2015, RBI had given an in-principle approval to three entities to set up TReDs (Trade Receivables Discounting System). The other two entities are — Mynd Solutions (Gurgaon) and NSE Strategic Investment Corporation and Small Industries Development Bank of India (Mumbai).

Source: http://www.moneycontrol.com/news/business/companies/axis-bank-launches-digital-invoice-discounting-platform-seeks-govt-push-2330445.html

Global Trade Finance Market Size, Status and Forecast 2022 – BNP Paribas, Citigroup, HSBC, Commerzbank, UniCredit, SunTrust Bank

This report studies the global Trade Finance market, analyzes and researches the Trade Finance development status and forecast in United States, EU, Japan, China, India and Southeast Asia. This report focuses on the top players in global market.

Brooklyn, NY — (SBWIRE) — 08/04/2017 — The report on the global Trade Finance market is a technical and competitive overview on the current state of Trade Finance market, covering various aspects such as product definition, financial revenues, investments, economy segmentation and developments based on chief market parameters, distribution channel, supply chain analysis, and the prevailing vendor landscape. It compiles exhaustive information sourced via proven research methodologies. The information thus compiled is presented in a logical chapter-wise format. It is also interspersed with relevant graphs and tables to enable readers get a better perspective of the global Trade Finance market.

Read more: http://www.digitaljournal.com/pr/3439423#ixzz4ot7Z71hk

Adam Smith Associates offers trade & commodity finance related services & solutions to its domestic and international clients. Above news update and trends are sourced from internet and are purely meant for reading on the related subject and for information. Adam Smith Associate is not responsible for any of the content and nor it is meant for any commercial benefits

 

Structured Trade Finance – What Does It Mean?

What is Structured Trade Finance?

Structured trade finance (STF), a type of debt finance, is used as an alternative to conventional lending. This form of finance is utilized regularly in developing countries, as well as, in relation to cross border transactions.

The objective is to encourage trade by making use of non-standard security. STF is generally used in high-value transactions in bilateral trading relationships. As a more complicated type of finance, STF is commonly related to commodity trading.

Within the commodity sector, STF products are most prevalent. It is used by producers, processors, traders, as well as, end-users. These financial arrangements are tailored by banking organizations to meet the precise needs of the clients. STF products are primarily working capital financing, warehouse financing and pre-export financing.

There are also some institutions that extend reserve-based lending, as well as, finance the conversion of raw materials into products, along with other customized finance products. In order to promote trading activities, STF products are extended across the supply chain.

STF structures are sponsored by limited recourse trade finance lines. The structure aims at offering better security mechanism and to act as an enhancement on the position of the borrower when viewed in isolation.

How Has Technological Advancements Complemented STF?

Trade credit insurance, bank assurances, letters of credit, factoring and forfaiting are some of the STF products that have been positively affected by the latest technological advancements. These products have changed due the recent developments.

The massive progress in communication and information domains have also helped the banking institutions to track the physical risks and events in the supply chain between the exporter and the importer.

Why are STF Facilities Used?

Structured trade finance products are used so that the risks related to trading in specific country and different jurisdictions can be mitigated. Any transaction together with STF products help to add resilience to the trade and the same cannot be said when looking at financing the individual elements of a trade.

Moreover, it allows for lengthening the payment time, strategizing procurement, diversifying funding and enhancing the ability for clients to boost the facility sizes.

What makes STF extremely attractive is that the borrower’s strength in the transaction is not scrutinized as closely as compared to a vanilla loan. Here, the focus is more on the structure and the underlying cash flows.

Another reason for STF’s popularity is that the transactions are not reflected in the balance sheet of a company and the presence of this financing option has helped several importers to maintain flexible credit terms with exporters.

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In recent years, structured trade finance products coupled with the recent advances in technology are considered as the fundamental reasons for the increasing volumes of international trade.

Structured trade finance supports 1/3rd of the global trade activities. It encourages the free flow of capital goods and commodities from one country to another. It is used primarily in the commodity sector.

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