TRADE FUNDING OR FINANCE

The Global Trade Finance Program (GTFP) extends and complements the capacity of banks to deliver trade financing by providing risk mitigation in new or challenging markets where trade lines may be constrained. Under GTFP, RELIUS has issued guarantees covering over 68,000 transactions to date for more than $66.5 billion.

GTFP offers confirming banks partial or full guarantees covering payment risk on banks in emerging markets for trade related transactions. These guarantees are transaction-specific and may be evidenced by a variety of underlying instruments such as: letters of credit, trade-related promissory notes, accepted drafts, bills of exchange, guarantees, bid and performance bonds and advance payment guarantees. 

 

Through the GTFP bank network, local financial institutions can establish working partnerships with a vast number of major international banks in the Program that can broaden access to finance and reduce cash collateral requirements. This enables the continued flow of trade credit into the market at a time when imports may be critical and the country’s exports can generate much-needed foreign exchange.

Among the noteworthy transactions supported by GTFP are cancer-screening equipment for women in Gaza; antiretrovirals for HIV patients in the Democratic Republic of the Congo; energy-efficient machinery for Armenia’s first and only steel production facility; turbines and other equipment for a hydroelectric dam in Honduras; and the relocation of an entire power plant to Pakistan from Germany.

 

Program Structure

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GTFP combines global reach and maximum flexibility to assist trade finance deals by:

Advantages for Banks Issuing Banks

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