ExWork’s Capital’s Chris Ash discusses the role of the alternative financier in Middle Eastern trade finance in Cash & Trade

Chris Ash, Managing Director of ExWorks Capital UK, describes the challenges and opportunities in Middle Eastern trade finance and how alternative pools of liquidity are needed to support economic growth in the region and facilitate the proliferation of small and medium-sized enterprises.

The dearth of funding left by banks in the region is damaging for businesses requiring immediate and flexible funding in order to complete transactions. Alternative financiers can serve as the panacea for this shortfall, and should work in tandem with banks to provide a solution.

Read the full article in Cash & Trade here.

ExWorks Capital’s Chris Ash discusses trade finance in the Middle East in Arabian Business

Chris Ash, Managing Director of ExWorks Capital UK, describes how Middle Eastern small and medium-sized enterprises (SMEs) are being under-served by banks in the region, and what can be done to resolve this deficit.

Unstable currency exchange rates, fluctuations in demand and insufficient margins all threaten the survival of small businesses in the Middle East, and financial support is required to stimulate further economic growth. But increased regulatory pressures have contributed to a withdrawal of capacity by banks. Alternative financiers are needed, now more than ever, to work alongside banks to remedy this shortfall in funding.

To read the full article in Arabian Business, please follow the attached link.

Proposition 112: S&P Global Ratings outlines the credit negative impacts for Colorado-based utilities before critical vote; covered by the specialist press

On the recent November ballot, Colorado’s citizens voted against measures that would have changed the nature of the state’s oil and gas development. Before the vote’s defeat, S&P Global Ratings published a report outlining the possible risks for energy exploration and production (E&P) companies, should the proposal be made law.

Proposition 112 would have required that E&P companies extend well setbacks (the permissible distance between a wellhead and surrounding structures) from 500 feet to 2,500 feet. This distance would have, in effect, rendered 85% of the state unusable for oil and gas drilling. By some estimates, this could have decreased the state’s GDP by some US$26 billion annually by 2030.

Michael Grande, director, S&P Global Ratings, said: “Passage of Proposition 112 is clearly a credit negative for the energy companies we rate, and it will affect some companies more than others.”

Following Moorgate’s outreach, Upstream (behind a paywall), Oil Voice, and Oil Gas Journal covered the news.

Deutsche Bank and Standard Bank of South Africa sign MOU supporting emerging markets’ US imports

Deutsche Bank has signed a memorandum of understanding (MOU) with the Standard Bank of South Africa, agreeing cooperation under the US Department of Agriculture’s GSM-102 initiative. Standard Bank will now be one of the preferred issuing banks of letters of credit for eligible emerging markets seeking to import certain agricultural products from the US.

The finalisation of the GSM 102 agreement places Standard Bank as one of the preferred issuing banks to the US Department of Agriculture’s Commodity Credit Corporation, along with 10 other financial institutions from across the Middle East and Africa region.

Following Moorgate outreach, the MOU signing was covered by TXF, Global Trade Magazine, Trade Finance Analytics and GTR.

In Construction news, S&P Global Ratings’ Joest Bunse explains how PFI’s successor may look remarkably familiar

The U.K. government’s recent budget marks the beginning of the end for the Private Finance Initiative (PFI) and Private Finance 2 (PF2). While the government plans to honour all existing contracts, the model will not be used going forward.

But is this likely? In an article for Construction News S&P Global Ratings’ associate director, Joest Bunse, explains how the end of PFI may not create markedly different financing options, after all.

Following Carillion’s collapse PFI contracts have come under heavy fire. But, the public sector allocating risks to the private sector makes sense, argues Bunse. This is especially true in the U.K., which boasts the largest and arguably most efficient public-private partnership (PPP) market in Europe. As a result, PFI – the U.K.’s PPP model – will likely continue albeit in a different form and under a different name.

Read the article here (behind paywall).

RiskFirst cited by CIO magazine on the new standard, ASOP 51, and what it means for US actuaries

The new actuarial standard for assessing pension risk, ASOP 51, came into effect in the US on 1st November, requiring actuaries to factor in potential risks that “may be reasonably anticipated to significantly affect the plan’s future financial condition”. In an article written by Chief Investment Officer (CIO) magazine, Michael Carse, defined benefit product manager at RiskFirst, explains some of the benefits of the rule – including the enhancement of risk management by formally putting in place the types of risk measures that plan sponsors’ CIOs should be seeing from their advisors, as well as promoting greater collaboration between actuaries and investment consultants – and how technology can play a key role in facilitating effective risk management.

 

To read the full article, please click here

Deutsche Bank ups the ante with data analytics for Securities Services

In November 2018, Deutsche Bank will go live with its Enterprise Analytics Capability in Germany. Described by Fiona Gallagher, the Bank’s Head of GTB Securities Services, as a “ground-breaking launch for Deutsche Bank and the wider banking industry”, the function will collate and analyse millions of lines of data every day, identifying potential efficiencies. This broader view over client liquidity positions will likely drive more effective capital management, thanks to a combination of Deutsche Bank’s deep wells of data, its technological and analytics capabilities, and banking expertise.

Following Moorgate’s outreach to the specialist press, this launch was covered by Funds Europe, Banking Tech, Markets Media, Asset Servicing Times, Securities Lending Times, Global Investor Group, Fintech Roundup, Finextra and Global Custodian.

S&P Global Ratings’ Michela Bariletti believes that private capital is necessary to meet the UN’s Sustainable Development Goals; covered by Business Green

The United Nations (UN) estimates that meeting its 17 Sustainable Development Goals (SDGs) will require global investments of between US$5tn and US$7tn every year until 2030. But how will this be funded?

In an interview with Business Green, S&P Global Ratings’ Michela Bariletti, analytical manager for infrastructure, suggests that, in order for governments to deliver on the UN’s targets, private capital must play a far greater role in green projects throughout the developing world.

Although private capital waiting to be deployed into infrastructure investments is at a record high, investors are less interested in projects in low income countries – which require the lion’s share of funding to meet the SDGs. Bariletti says: “to engage the private sector on a larger scale, it’s important to build a project pipeline to justify the costs of entering a new market or segment. ”

Read the article here.

Global Supply Chain Finance Forum appoints Deutsche Bank’s Christian Hausherr as Chair, covered by the specialist press

The Global Supply Chain Finance Forum – an initiative comprising the ICC Banking Commission, BAFT, EBA, FCI and ITFA – has appointed Christian Hausherr, European Product Head of Supply Chain Finance at Deutsche Bank, as its Chair.

The GSCFF was established in 2014 to develop, publish and champion a set of commonly agreed standard market definitions for Supply Chain Finance. In turn, Hausherr – as a recognised expert in the field of SCF – has taken a leading role in the drafting of the GSCFF’s Standard Definitions for Techniques of Supply Chain Finance, as well as the Wolfsberg/ICC/BAFT Trade Finance Principles.

The news was covered by GTR, TXF, TRF NewsSupply Chain Digital, SCF Briefing, Finextra, Fintech Finance, Financial IT, Fintech Insight.