Structured Trade Finance

The nature and complexity of international trade has changed dramatically over the past generation or so. Emerging markets now play the most dynamic role in international trade and are the focus of global supply chain development. As large-scale projects and global supply chains reach deeper into emerging markets, the risk of nonperformance and nonpayment increases.


These prevailing trends in international trade have created the need for financing solutions that are more robust and can mitigate most of the risks associated with complex trade initiatives involving riskier emerging markets. Structured trade finance has emerged to support these initiatives by addressing risks related to the performance or completion of a transaction, rather than more traditional reliance on the financial soundness of the parties to a transaction.


This course describes the concept of structured trade finance in detail and how it differs from traditional trade finance. You will also learn about the different types of structured trade finance solutions and the role of the different lending institutions involved.


    On completion of this course, you will be able to:

    Explain the concept of structured trade finance and how it differs from traditional trade finance

    Describe the different solutions offered by structured trade finance providers

    Outline the role of development banks and export credit agencies (ECAs) in structured trade finance


    Topic 1: Overview of Structured Trade Finance

    What is Structured Tarde Finance?

    Providers of Structured Trade Finance

    Structured Trade Finance versus Traditional Trade Finance

    Risks in International Trade that Affect Structured Trade Finance

    o Performance Risk

    o Payment Risk

    o Political Risk

    o Legal Risk

    o Market (Volatility) Risk

    Types of Lending in Structured Trade Finance

    o Asset-Based Lending

    o Cash Flow Lending

    Additional Features of Structured Trade Finance

    o Collateral Management

    o Hedging

    o Insurance

    o Guarantees

    Benefits of Structured Trade Finance

    o Flexible Financing Solutions

    o Risk Reallocation

    o Avoidance of Restrictive Covenants on the Borrower’s Balance Sheet

    o Use of Future Cash Flows to Raise Export Financing

    o Entry into Emerging Markets

    o Lower Funding Costs

    Drawbacks of Structured Trade Finance

    o Performance Risk

    o Complexity

    o Up-Front Costs

    o Price Volatility

    o Reliability of Collateral Managers

    o Political Risk

    Topic 2: Structured Trade Finance Solutions

    Pre-Export Financing

    Tolling & Processing

    Warehouse Financing

    Borrowing Base Financing

    Syndicated Lending

    Topic 3: Role of Development Banks & ECAs in Structured Trade Finance

    Development Banks

    Products Offered

    Standard Loans

    Local Currency Financing

    Guarantees and Pre-Export Facilities


    Collateral Requirements

    Export Credit Agencies (ECAs)



    60 Minutes

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