Institutional investors join TFD Initiative to access trade assets

Through TFD Initiative, the trade industry has succeeded to establish trade finance as an asset class investable by the largest pool of banking institutions and capital market firms.

TFD Initiative has indeed brought together trade originators, credit insurers, brokers, institutional funders and service providers committed to increasing the level of automation and transparency in trade asset and risk distribution on the basis of technology-based market practices.

We are delighted to welcome 20 more members to TFD Initiative including a series of leading asset management institutions, credit insurers, law firms, market associations and service providers. Here is the feedback from some of them:

Guy Brooks, Managing Director, Working Capital Finance, Pemberton Asset Management says: “Pemberton is a leading alternative credit specialist offering an innovative range of credit solutions for borrowers and investors, including trade finance. Over the past five years, we’ve seen barriers for institutional investors and banks accessing this pool of capital decrease considerably. As a member of the TFD Initiative community, we will continue to work with financial institutions and platforms to provide attractive financing solutions for mid-market, sub-Investment borrowers as this segment continues to grow.”

Martin Opfermann, CFA, Senior Portfolio Manager, Allianz Global Investors adds: „Stagflation and rising rates have become investors’ concerns. Uncertainty has increased significantly. More than ever Trade Finance provides stability in times of turbulence and has the potential to become a mainstream asset class for investors. Initiatives like the TFD Initiative will help syndication and improve investors access to the asset class.”

George Arian Nijborg, Senior Portfolio Manager, Aegon Asset Management says: “Aegon Asset Management are delighted to be joining the TFD Initiative where we can further connect with fellow trade finance industry members and work together on truly creating a scalable and durable asset class for institutional investors”.

Mark Abrams, Head of Trade and Eeceivables Finance, Trade Finance Global (TFG), says: “At TFG we originate trade and receivables finance opportunities globally, and we are always interested in broadening our base of liquidity providers (FIs, funds, and institutional investors), as demand has only increased during the pandemic. We look forward to working with the TFD Initiative to explore new partnerships and structures for collaboration.”

Adam Clark, Underwriter, Financial Risks Solutions, Liberty Specialty Markets, says “We believe effective distribution is a vital component for writing insurance risk in the trade finance space, with digitisation playing an increasingly important role. As part of the TFD Initiative we are excited to be collaborating with the wider trade finance industry and sharing best practices as we explore innovative methods of distribution, standardisation, and automation. In doing so, we can further improve our support for clients and brokers in the fast-moving world of trade finance whilst also helping to attract more risk and capital to the short-term trade finance sector.”

Sanjeev Gupta, ED, Financial Services, AFC says“At Africa Finance Corporation, we facilitate trade in Africa by enhancing the value capture on our primary products and support integration across the continent through our infrastructure investments whilst also providing funding to increase the trade finance capacity for Africa’s local financial institutions. We are delighted to join the TFD Initiative as a means to expand our origination and distribution of trade assets as well as help to grow the pool of investors in African trade finance” 

Martijn Brouwer – Global Chief Commercial Officer, Atradius Collections adds: “TFD Initiative supports the growing trend of Trade Receivables as an alternative asset class for investors. Atradius Collections successfully supports risk management for these investors through specialist products such as Back Up Servicing. We look forward to being involved with the TFD Initiative community.”

Richard Wulff, Executive Director, International Credit Insurance & Surety Association (ICISA) adds: “Trade finance is changing rapidly due to the advent of new technologies, which allow for faster and more accurate decisions making. This is crucial to build on the already important role that trade credit insurers play in the trade finance space. TFD Initiative’s efforts to bring together the different parts of this marketplace, especially through the digitalisation and the use of other new technologies will benefit all involved – insurers, banks, and of course, the businesses seeking financing and protection for trading. As the global trade association for the trade credit insurance and surety sector, ICISA is very pleased to collaborate with TFD Initiative at this critical moment for global trade. We face many challenges emerging from the pandemic into a world of shifting geopolitical priorities – this is one of the solutions needed to help us navigate through difficult times.”

As technologies open new avenues to make trade finance more liquid, TFD Initiative has partnered with XDC Network to enable originators to tap into additional funding sources such as retail investors through the use of distributed ledger technology and tokens.

Atul Khekade, co-founder of XDC Network adds: “XDC Network is an enterprise-ready layer 1 hybrid blockchain dedicated to global trade financing. We are thrilled to support TFD Initiative using our smart contract technology and digital asset, XDC. TFD Initiative enables us to work closely with a series of bank and non-bank originators, offer them access to new types of investors including retail, and contribute to closing the SME financing gap.”

Access the TFD Initiative website to discover the full list of members and our podcasts.

About the Trade Finance Distribution Initiative
Trade Finance Distribution Initiative (TFD Initiative) is an industry-backed drive to create the blueprint for global trade finance distribution. It addresses the business and regulatory issues impacting banks and non-bank financial institutions when distributing or investing in trade finance. TFD Initiative seeks to develop standardised best practices for the wider distribution of trade finance assets. This includes common data standards and definitions to address operational inefficiencies, transparency issues, and risks. TFD Initiative relies on the insights of its members, which includes banks, institutional investors and trade associations. It is powered by Tradeteq and XDC Network.

For more information, please visit www.tradefinancedistribution.com.