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Leading insurance underwriters back EBRD trade programme
$183 million cover will help boost trade for CIS
The EBRD will be able to increase substantially its trade activities across
the Commonwealth of Independent States after a group of international
insurance underwriters agreed for the first time to back a multi-million
dollar EBRD trade programme for the region.
The new €183 million EBRD-led trade facility will be underwritten by ACE
Global Markets (AGM), which is leading the group of insurers, and by Catlin
Syndicate 2003, XL Syndicate 1209 and Kiln Syndicate 510 at Lloyd’s of London.
Under its Trade Facilitation Programme, the EBRD guarantees local issuing
banks, which in turn guarantee local importers. The backing by the syndicate
group will enable the EBRD to double its exposure for selected issuing banks
in Azerbaijan, Georgia, Moldova, Russia, Tajikistan and Ukraine.
This support is a significant new development in trade finance, said Rudolf
Putz, Head of the EBRD’s Trade Facilitation Programme. It will allow the Bank
to increase its risk-taking capacity to further develop trade across the CIS,
which can support economic growth and create jobs, he added.
Julian Edwards, Head of Political Risks and Credit at AGM, said: “This is an
important region for ACE and we are proud to be associated with this
partnership between the EBRD and the private sector. This policy will enable
the EBRD to leverage its capacity to further its development aims in the
region. ACE itself is actively involved on the ground in this region and
recognizes the area’s significant potential.”
James Cunningham, Head of Political Risks at Marsh, which acted as insurance
agents for the EBRD, and led the structuring, placement and syndication of the
policy, said: “The EBRD policy is unique in the private insurance market in
terms of its custom-built structure, the nature of the underlying risks that
are insured, and the high standards put on transparency, best practice and
operational procedures.”
Established in 1999, the TFP supports trade to, from and within the EBRD’s 29
countries of operations. It assists issuing banks in building track records
with their correspondent confirming banks. This reduces cash collateral
requirements and freeing up clients' working capital by providing guarantees
for the payment of various trade finance instruments issued by local banks.
The EBRD programme has been a template for other International Financial
Institutions now actively involved in trade finance.
Under TFP, the EBRD has facilitated more than 5,400 trade deals worth nearly
€3 billion. This year the programme is on course for another record year, with
business volume expected to exceed last year’s total of more than €500
million. The programme now includes more than 100 issuing banks in the region,
with limits exceeding €1 billion in total, and 600 confirming banks globally.
Notes to Editors
ACE Global Markets (AGM) is ACE’s speciality international business,
underwriting through ACE’s Lloyd’s Syndicate 2488 and ACE European Group
Limited. Specialty lines include excess and surplus lines business, Marine,
Aviation, Energy and Political Risk as well as Property, Financial Lines and
Accident and Health. Additional information on ACE Global Markets can be found
at www.aceglobalmarkets.com.
The ACE Group of Companies is a global leader in insurance and reinsurance
serving a diverse group of clients. Headed by ACE Limited (NYSE: ACE), a
component of the Standard & Poor’s 500 stock index, the ACE Group conducts its
business on a worldwide basis with operating subsidiaries in more than 50
countries. Additional information can be found at: www.acelimited.com
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