In an interview with Reactions magazine, Sian Aspinall, Managing Director of BPL Global, discusses how the political risk insurance market performed in 2018 and the current state of play across the wider credit and political risk insurance (CPRI) market.
Aspinall explained, “This year, maximum per-risk capacity available for political risk rose to US$3.2bn, representing a US$200m increase from 2018 and indicating healthy appetite within the market to write political risk insurance business.”
To read the full article, please see page 44 of the latest edition of Reactions (behind paywall).
Writing for The Global Treasurer, Global Credit Data’s (GCD) Executive Director, Richard Crecel, explains that banks, in general, have adequate recovery strategies in place to deal with corporate defaults.
GCD data shows that banks recover, on average, 76% of debts owed by large corporate borrowers after default. What’s more, in most cases, banks will recover nearly all of the outstanding amount on a defaulted loan.
In turn, the article explores the reasons behind such high recovery rates and sheds some light on how long it actually takes for banks to recover defaulted loans.
Read the full article here
The OBOR initiative is an integral component of China’s vision for restructuring the global economy. The Middle East is viewed as a key partner in enabling the global initiative to reach its potential, and the possible payoffs for the region if BRI succeeds could be substantial – fuelling bilateral trade, new trade corridors, improved infrastructure and new opportunities for investment.
In an article for Trade Arabia, Bana Akkad Azhari, Head of Relationship Management MEA & CIS, Treasury Services, BNY Mellon, discusses how local banks must have the right tools to support the transactions effectively and efficiently to ensure businesses in the region can capture the new trade opportunities on offer.
To read the full article, please click here.
Egypt stands at a crossroads both physically – situated between the Middle East and Africa, and with the European market right next door – and with respect to its economic outlook. Many reforms are underway but are they generating the economic boost they intended? At a roundtable in Cairo, BNY Mellon and EMEA Finance brought together some of the country’s leading bankers from large and specialist institutions, as well as the public and private sector, to discuss how Egypt is transforming to offer a more positive outlook.
To read the full write-up of the discussion, please click here (please note, subscription required).
Writing for International Trade Magazine, Christoph Gugelmann and Nils Behling, co-founders of Tradeteq, discuss the financing problems facing SMEs – especially in emerging markets – and how trade receivables’ potential as an investable asset class can help provide a solution.
Indeed, while trade finance has been a sound investment option for decades, only now has technology reached the right level to make these assets easily investable.
Read the full article in the latest print edition of International Trade Magazine.
On 16th May, KfW closed its largest ever green bond issue, coming in at €3 billion, with UniCredit acting as bookrunner alongside Bank of America and Crédit Agricole.
Antonio Keglevich, UniCredit’s Head of Sustainability Bond Origination, spoke to GlobalCapital, commenting: “The bookbuilding process was extremely smooth and very orderly. A 3bp tightening in the spread was more than justifiable on the back of a book of more than €8bn.”
The full article can be found here.
Following California’s devastating Camp Fire in late 2018 and PG&E’s resulting filing for bankruptcy some months later, Gabe Grosberg, Senior Director and North America Regulated Utilities Sector Lead at S&P Global Ratings, comments on what could lie ahead for California’s other investment grade-utilities for Utility Dive.
“Pressure on the state’s utilities isn’t over,” warns Grosberg. “In the absence of regulatory change, it’s possible that another electric utility could face trouble during the 2019 wildfire season. And, depending on the magnitude and severity of the repercussions, the boards of other California utilities could file for voluntary bankruptcy before year-end 2019.”
The full article can be found here.
In the coming years, Italy’s gas-dominated power market will transform as wind and solar capacity catches up and coal-fired assets are phased out. This is according to a new report from S&P Global Ratings analysing Italy’s National Energy Strategy, which aims to increase the share of renewable sources to 30% by 2030.
Stefania Belisario, Associate Director of Infrastructure at S&P Global Ratings and primary analyst of the report, says: “The anticipated growth in renewables to 2030 adds downward pressure on wholesale power market prices, but this will be offset by continued coal and nuclear closures in France, Germany, and elsewhere as well as upside in demand from the electrification of transport, and, to a lesser extent, heating.”
Following outreach by Moorgate, the report was covered by Solar Power Management, Energia Oltre and World of Renewables.
S&P Global Ratings has awarded a Green Evaluation score of E2/68 to Minera Los Pelambres’ proposed US$875 million loan – the second highest score available on the Green Evaluation scale of E1-E4 – making Los Pelambres the first mining company globally to receive a Green Evaluation. The loan facility will fund part of the company’s US$1.3 billion copper mine expansion project, based in Chile.
Roughly US$530 million of the US$875 million loan is labelled as a green financing since proceeds will be deployed at the new water desalination plant and the associated pipeline. The plant will bring seawater to the plant in Choapa Valley, instead of competing for fresh water in neighboring municipalities, where water resources are scarce and expensive.
Following outreach from Moorgate, TXF News covered the Green Evaluation.
According to a recent report by S&P Global Ratings, executives and asset managers are in agreement that the rise of environmental, social, and governance (ESG)-based investing will likely accelerate as a younger, more values-oriented crop of investors enter the global markets.
Doug Peterson, S&P Global President and CEO, told attendees of launch event for S&P Global Ratings’ ESG Evaluation tool, “Now more than ever, companies understand and have a much better appreciation of their responsibilities as corporate citizens. We see ESG matters as an essential component of sustainable company performance.”
Following outreach from Moorgate, the report was covered by Aqua Now, Wealth Adviser, SDG Knowledge Hub, and Institutional Asset Manager.