Forfaiting & Loan Trading
Nexent Bank started its Global Forfaiting and Loan Trading business in 1997 and is today one of the major players in this area. We are active in the secondary market for trade-related and financial assets, with a strong focus on emerging markets.
Our department trades in a wide range of instruments, including syndicated loans, promissory notes, bills of exchange, letters of credit, and corporate loans. We are a member of the International Trade and Forfaiting Association (ITFA) and the Loan Market Association (LMA).
Core Business Areas
Loan Trading
Nexent Bank is an active player in hard currency LMA structured loans to the financial institutions sector. We participate as an original lender or via purchase in the secondary market.
Forfaiting
A method of trade finance where we purchase debt obligations arising from the supply of goods or services on a without-recourse basis, protecting the exporter from financial risk.
Advantages of Forfaiting
Forfaiting is a tailor-made financing solution designed according to the specific needs of the exporter:
- 100% financing without recourse to the exporter
- Eliminates political, transfer, and commercial risk
- Protects against interest rate and exchange rate fluctuations
- Enables business in high-risk countries
- Simple documentation and fast conclusion of transactions
Asset Characteristics
Trade-related assets offer several benefits for financial institutions:
Liquid Assets
Credit lines can be freed in a short time if needed.
Attractive Yield
Trade-related assets often have better returns than syndicated loans.
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 Zürich, Switzerland
Bucurest
Strada Nicolae Filipescu 39-41, 020961 București