Influential industry groups are urging governments to push adoption of the legal entity identifier (LEI) system, arguing wider uptake could cut trade costs by US$100bn and widen access to financing for smaller companies.  A decade since it was established by the G20, the LEI – a unique, electronic fingerprint companies can use to demonstrate their identity and ownership – remains “underutilised” in trade, says a report published this week by four industry bodies, including the International Chamber of Commerce United Kingdom (ICC UK).  It argues that wider usage would dramatically sp ..read more

London-based investment manager Acre Impact Capital has won investor commitments worth US$100mn for its inaugural fund, an export finance-focused offering that will target climate infrastructure in Africa. Acre says the fund, which it hopes to grow to US$300mn, has attracted a diverse group of backers, including institutional investors, family offices and impact-first investors such as Trimtab Impact and Ceniarth. Development finance institutions are also among the initial investors, including the European Investment Bank (EIB) – with a US$40mn investment – and the UK government-backed FSD Afr ..read more

A new template to standardise distribution of open account trade assets should make it easier for investors to enter the sector, industry advocates say. The template, the Master Account Receivables Assignment Agreement (Mara), was developed in 2018 by HSBC and law firm Dentons. After being honed through several years of use, it has now been released for market-wide use through the International Trade and Forfaiting Association (ITFA). ITFA and other parts of the industry have pushed in recent years to broaden investor interest in trade finance assets, particularly among deep-pocketed capital m ..read more

Surecomp, a provider of trade finance systems to banks and corporates, has signed a partnership agreement to integrate Cleareye.ai’s artificial intelligence (AI)-based trade compliance solutions onto its Rivo platform. Launched in May 2022, Rivo is set up as a collaborative digital hub that provides open API access to importers, exporters, banks, insurers, shipping companies and solution providers, in an attempt to stitch together the patchwork of disparate digital trade and trade finance solutions into one centralised offering. In all, five compliance solutions providers are now integrated on ..read more

Financial backers are continuing to assess whether they should reaffirm their support for a multi-billion-dollar LNG project in Mozambique as operator Total looks to restart work. The project was suspended in 2021 after insurgents known as the Islamic State Mozambique attacked Palma, a town in the northern province of Cabo Delgado. Total declared force majeure and withdrew its staff from the nearby Afungi project site. But earlier this year, the French energy major announced its intention to restart the project, meaning its financial partners are also expected to confirm their commitment. A co ..read more

Commodity traders must improve preparations for margin calls by improving their liquidity risk management, including by holding more liquid assets and conducting stress tests, the Financial Stability Board (FSB) has said.  Following an analysis of market disruptions, including the price volatility that caused “turmoil” in the commodities markets in 2022, the FSB has today issued several recommendations on how traders should increase their protection against liquidity stresses.  Spikes in commodity prices can prompt margin calls, whereby traders must provide additional funds to cover ..read more

A French law paving the way for trade finance digitalisation has cleared its first legislative hurdle and will be followed by a decree defining the criteria for what constitutes a “reliable” digital trade platform. Part of a package of measures aimed at enhancing France’s appeal as an investment destination and making it easier for firms to raise financing, the bill has the backing of Renaissance, the party of President Emmanuel Macron. The bill was passed by the lower house of the French parliament on April 10 and has now been sent to the Senate, where it is set to be debated in mid-May, acco ..read more

Securities depository giant Clearstream has announced it is investing in Munich-based fintech Digital Vault Services (DVS), unveiling plans to expand its issuance and safekeeping services to digital bank guarantees.  Clearstream, which is part of the Deutsche Börse Group, will take a minority stake in DVS, subject to regulatory approvals and finalisation of legal documentation. It expects to complete the transaction in the second half of this year, the company announced today.  Clearstream currently operates Germany and Luxembourg’s central securities depositories and has €18tn in as ..read more

London-based fintech Finastra will offer automated ESG scoring across its trade and working capital solutions following a partnership with technology provider TradeSun.  The scoring tool collects information relating to entities’ business activities, supply chains and risk profiles, measuring that data against globally recognised frameworks such as the UN’s Sustainable Development Goals.  It is being made available across Finastra’s trade and supply chain finance offering, enabling users to “power more sustainable business flows”, the company says in an April 16 announcement.  ..read more

Santander has named Enrique Rico as its new global head of trade and working capital solutions, following last month’s promotion of Mencía Bobo.  Madrid-based Rico has spent nearly eight years at Santander Corporate & Investment Banking (CIB), joining in 2016 as vice-president, structured trade and asset mobilisation, before taking up the role of global head of structured trade.  He previously spent two years at RBS in a London-based role, originating financing in Iberia and Italy, which followed a year in Santander’s structured trade and commodity finance business.  Rico re ..read more