Participation in L/C Confirmations
- Possibility of sharing risks
- Risk sharing with an S&P AA-rated partner (same rating as the Belgian State), improving the RWA (risk-weighted asset) for the bank
- Unlocks additional capacities for new deals
- First-demand guarantee in favour of the Client
- Risks are taken on financial institutions within the framework of traditional trade finance instruments (mainly confirmation of L/Cs)
- Undisclosed to the obligor/foreign bank
- Credendo – Export Credit Agency participates in these transactions via a credit limit or on an ad hoc basis
- Risk- and fee-sharing principle: the maximum participation amount will be equal to the Client’s net retention; participation will be under the same conditions as those of the Client
Credendo – Export Credit Agency offers banks the possibility of sharing their risks on foreign banks and other financial institutions (FI) for trade-related transactions (such as L/C Confirmations, Standby L/Cs, Guarantees and Trade Loans).
Credendo – Export Credit Agency collaborates via a comprehensive insurance policy or an Unfunded Risk Participation (URP).
Credendo – Export Credit Agency can participate in FI transactions by granting credit limits or on an ad hoc basis.
FI transactions that can automatically be placed under a credit limit have to meet the following conditions:
- The insured must retain an amount at risk which is at least equal to Credendo – Export Credit Agency’s amount at risk
- The maximum risk period is 1 year
- Credit limits are granted in EUR for a period of 1 year
- Credendo – Export Credit Agency can also provide cover on a case-by-case basis for any operation which cannot be booked under a credit limit
- Specific acceptance by Credendo – Export Credit Agency can be arranged by signing a Certificate of Acceptance for the specific transaction.
Credendo – Export Credit Agency participates only in trade/project-related transactions and acts in a way that conforms to the market. The following rules always will be adhered to:
- The maximum participation amount will be equal to the bank’s net retention.
- Credendo – Export Credit Agency doesn’t quote: the pricing is based on the Client’s remuneration and has to be in conformity with the market.
Credendo – Export Credit Agency is the official Belgian export credit agency. As a public player it benefits from the guarantee of the Belgian State. Credendo – Export Credit Agency is the official Belgian export credit agency and the fourth largest European credit insurer. As a public player it benefits from the guarantee of the Belgian State.
Credendo – Export Credit Agency is a single-risk insurer with a focus on emerging markets and developing countries and a reliable partner with sound experience and a strong financial basis.