JB's weekly round-up - 28 October 2013

Welcome to the weekly round-up of the TXF news service

Oh Vienna!
First the Berne Union (BU), and now the ICC Banking Commission – both hosting in Vienna. Well, why not, it is a beautiful and friendly city – any time of the year. So, last week, the great and the good in much of the trade finance world descended once again on the city for the ICC’s Banking Commission meeting. TXF joined the throng and met up with many very well known and respected professionals in the realm of international trade finance. All-in-all, it was a stonking good three days of networking – and dining of course.
Of particular high interest was the debate on how regulation is affecting banks and the way banks are having to operate. John Ahearn at Citi, declared that the world’s top 10 trade banks were responsible for approximately 27% of the business, and with at least a further 1,500 banks involved in trade finance, some consolidation in the sector was inevitable. See: ICC in Vienna: regulation will lead to trade bank consolidation 

We also report on the changes that have taken place in the ICC Banking Commission executive committee – where long time industry stalwarts, Dan Taylor and Georges Affaki have stepped down from their roles. See:ICC in Vienna: Taylor and Affaki step down
 
The busy folk of trade finance
Even after decades in this field, it still never ceases to amaze me just how mobile the trade finance community is. Only last week, yours truly was in Paris talking with a global head who was on his way to the airport for a 30-hour round trip to a far-flung corner of Africa. Hard core! In another instance, an interview I had set up with a London-based banker who happened to be in Ghana for early last Friday morning never materialised – why? – because said banker had to fly to New York overnight. I touched base with him briefly as he waited very early Friday morning NYC time for a room in his hotel. Well done to all you jet-setters, I trust you are chalking up your air miles!
 
In market moves last week, we saw another trade industry stalwart, Margrith Lütschg-Emmeneggerbeing named as the new chairman of the International Factors Group. The appointment comes at an exciting time with factoring seeing fast growth in many markets. Of course, Margrith also remains president of FIMBank in Malta.
Meanwhile at the Netherlands FMO, Jurgen Rigterinktakes over as the new chief risk and finance office – as Nico Pijl steps down after 27 years at the agency. Linda Broekhuixen also steps up as the new chief investment officer.  
 
Elsewhere, on the commercial bank front, Geoff Parryhas been appointed as UK head of global corporates, trade finance at Barclays. He moves from NAB in Singapore where he was head of trade fiancé for South-East Asia. Welcome back to London Geoff, its good to have back up here.
 
Landmark in Africa 
It is not surprising that we see landmark deals in Africa – there is much to be done, and ‘firsts’ can be expected as financiers find innovative solutions for transactions. And so we have the Triumph Power transaction in Kenyawhere Standard Bank combined with the Industrial and Commercial Bank of China (ICBC) on a $108 million debt package for a heavy fuel oil plant in the country. The project involved MIGA providing bespoke political risk guarantees. This was the first time MIGA has ever issued guarantees to a Chinese lender.
 
A further export and agency development last week saw financing secured for the Ghana TEN FPSO ship, in what amount to an overall $847 million project (debt and equity). With significant Japanese corporate involvement, JBIC provided strong financial support.
 
And finally...traders back in the groove 
Commodity traders were back in the market last week represented by Gunvor looking to raise $1.2 billion from the market. The revolver was officially launched on Thursday, and a bank meeting is scheduled for 29 October in Geneva.
 
All the best,

Jonathan Bell
Editor-in-Chief