In our latest trade and export finance webinar, partners Mark Norris and Ellis Lawson gave an update on the export credit agency and development finance market, including: a look back at 2023; consideration of the key trends shaping the market and what we can expect from the year ahead; a discussion of some of the sustainability features which are increasing in prominence in the export and development finance market; and a discussion of the increasing funding gap in developing markets, with a particular focus on the need for “adaptation finance ..read more

Written by Matilda Johnson and Jacqueline Cook In this blog, we take a look at some new jargon and key terms that you might come across in your transactions or industry discussions in the coming months. Trade & Export Finance Uniform Rules for Transferable Electronic Payment Obligations (URTEPO) URTEPO is published by the International Trade and Forfaiting Association (ITFA) and aims to provide the trade and forfaiting industry with a robust framework within which to operate with confidence and enable the modernisation of the traditional forfaiting market. URTEPO allows for the payment obl ..read more

Our latest Trade & Export Finance webinar, delivered by Maria Capocci (Associate) and Ellis Lawson (Partner), considered the different types of environmental, social and governance (ESG) loans and their current position in the finance market. The webinar also provided a practical insight into the key concepts behind the LMA's draft sustainability linked loan (SLL) provisions and how parties may look to negotiate those provisions ..read more

Written by Sam Fowler-Holmes, Matilda Johnson, Luna Owen, Geoff Wynne and Pedro Leake-Bandeira On 12 September 2023, the European Commission proposed a new EU Regulation on combatting late payments in commercial transactions which will revise and replace EU Directive 2011/7/EU (the Late Payment Directive). The Commission says it aims to reduce the significant impact that late payments have on businesses and SMEs by addressing shortcomings in the Late Payment Directive. The proposed EU Regulation will introduce stricter and more streamlined measures to prevent late payment practices, such as en ..read more

Edited by: Matilda Johnson and Geoffrey Wynne Today is the day, the Electronic Trade Documents Act (ETDA) is now in force! Although a short piece of legislation, it is flexible and seeks to give certain trade-related electronic documents the same legal recognition as their paper counterparts. This will help to move at least some of the sizeable trade market into the digital era. It is no secret that the ETDA will offer a certain level of clarity to help mold responses to the ever-growing number of questions and approaches put forward by clients and industry bodies that are looking to use ..read more

Jacqueline Cook, Of Counsel, and Larissa Head, Trainee Solicitor, sum up the key points of the Electronic Trade Documents Act 2023 (the Act) which will shortly receive Royal Assent and come into force two months later. What is the aim of the Act? The aim of the Act is to allow certain documents used in trade and trade finance in electronic form to have the same legal effect as paper documents. Until the Act comes into force, these electronic trade documents are not considered capable of being (physically) possessed under English law to enforce rights to payment of sums of money or delivery of ..read more

Jacqueline Cook, Of Counsel and Larissa Head, Trainee Solicitor, provide an update on the transition away from USD LIBOR with the deadline of 30 June 2023 upon us. What do market participants in the trade finance industry need to be doing with the limited time left? For some time now, parties in the trade finance sector have been aware that the use of USD LIBOR was coming to an end as the transition to use alternative Risk Free Reference Rates (RFRs) progresses using the Secured Financing Overnight Rate (SOFR) as the basis for RFRs for USD ..read more

Jacqueline Cook, Of Counsel, sums up the key messages from Sullivan’s May webinar. Geoffrey Wynne considered what financiers could do if things start to go wrong in a trade, export or project finance transaction and asked participants to consider a few key questions: could you anticipate a fraud; is the financing structure sturdy; and could the structure facilitate mis-selling in any way?    With these in mind, the message is clear: carry out transaction due diligence before signing; monitor the income generating assets throughout the life of the transaction; and respect the finan ..read more

In our April webinar “Risk Mitigation Techniques in Trade Financing Structures”, which I delivered with my colleagues Sam Fowler-Holmes and Maria Capocci, we discussed methods to mitigate risks all the way along the transaction lifecycle. We covered the option of taking charges over the accounts of a Borrower and the funds standing to the credit of such accounts, looking at the importance of the "triple cocktail" in demonstrating the requisite level of control where a lender wants to take the coveted fixed charge.  ..read more

In our webinar of 23 March 2023, Sam Fowler-Holmes and I looked at some common structures in trade finance. When discussing structuring warehouse financing, we mentioned that one key mitigator of risk in such structures was the role of a collateral manager or stock monitor. As an independent third party in any transaction where the sale of the inventory is the primary source of repayment of the financing a collateral manager or a stock monitor can provide an added layer of comfort to the financier ..read more