Forfaiting & Loan Trading
Nexxent Bank started its Global Forfaiting and Loan Trading business in 1997 and is active in the secondary market for trade-related assets, with a strong focus on emerging markets.
Our department works with a wide range of instruments, including syndicated facilities, promissory notes, bills of exchange, letters of credit, and corporate facilities. We are a member of the International Trade and Forfaiting Association (ITFA) and the Loan Market Association (LMA).
Core Business Areas
Loan Trading
Nexxent Bank is active in hard currency LMA structured facilities for the institutional sector. We participate directly or through secondary market purchase.
Forfaiting
A trade-related method where we purchase obligations arising from the supply of goods or services on a without-recourse basis, supporting exporter risk management.
Advantages of Forfaiting
Forfaiting is a tailor-made structure designed according to the specific needs of the exporter:
- Full receivables purchase without recourse to the exporter
- Eliminates political, transfer, and commercial risk
- Protects against interest rate and exchange rate fluctuations
- Supports business in more complex markets
- Simple documentation and fast conclusion of transactions
Asset Characteristics
Trade-related assets offer several benefits for institutions:
Liquid Assets
Exposure capacity can be adjusted in a short time if needed.
Attractive Yield
Trade-related assets can offer attractive portfolio characteristics.
Simplicity
Uniform documentation eliminates excessive legal costs.
Flexibility
Tenors typically vary from 6 months to 5 years.
Office locations
Amsterdam
B. Amsterdam in Johan Huizingalaan 763a, 400 1066 VH Amsterdam
Zurich
Hardturmstrasse 161, 8005 Zurich, Switzerland
Bucurest
Strada Nicolae Filipescu 39-41, 020961 Bucuresti