Etihad Credit Insurance (ECI), the UAE Federal export credit company, and Standard Chartered Bank, a leading global banking group, signed an agreement that will allow the bank to receive trade credit protection for its financial transactions and help create more funding capacity for UAE businesses.
This is the first time that a bank has signed a comprehensive supplier finance policy with ECI, thereby expanding the export credit agency’s product positioning to intensify its coverage to banking and financial institutions.
Under the agreement, ECI will provide insurance coverage to Standard Chartered UAE’s transactions through a Supplier Finance or Supply Chain Finance Policy, which will insure the bank’s transactions.
This facility will help the bank to boost the amount of assets that it can lend to its clients and create more capacity with enhanced access to finance for UAE corporates. It will also assist in enhancing cash flow through offering the suppliers payment upfront, as well as help the buyers give flexible and extended payment terms.
In addition, it will allow the bank to improve its internal ‘returns’ since the risk is covered by a federal government and a well-rated organisation. ECI has Insurance Financial Strength (IFS) Rating and an Issuer Default Rating (IDR) of AA- (Very Strong) with Stable Outlook from Fitch Ratings.
The agreement, which was signed by Massimo Falcioni, CEO at ECI and Rola Abu Manneh, CEO of Standard Chartered Bank, UAE, is a positive development for exporters in the UAE as it will make it easier for these companies to strengthen their presence both in the local and international markets.
Underscoring the Federal export credit company’s commitment to support financial institutions in the UAE, Massimo Falcioni, CEO of ECI, said: "We are delighted to sign this agreement with Standard Chartered Bank, as it shows our strong resolve to boost the lending capacity of banking and financial institutions, and thus boost the competitiveness of the UAE's trade and export businesses as they compete in international markets. This product will help our partners offer more funding, safely and securely, into the trade and supply chain for UAE companies, thereby accelerating and sustaining national economic diversification.”
Meanwhile, Rola Abu Manneh, CEO of Standard Chartered Bank, UAE, stated: “Amidst the current economic cycle brought about by the pandemic, the banking and financial services sectors in the UAE have managed to make steady progress thanks largely to the UAE’s unswerving commitment to create a conducive environment for entrepreneurs and homegrown companies, as well as to ECI’s bespoke financial tools and solutions. By signing this policy with ECI, we can confidently offer unique range of financial solutions to UAE companies wanting to tap new markets and cement their presence in the global trade arena.”
In 2019, ECI and Standard Chartered Bank signed a Memorandum of Understanding (MoU) aimed at providing seamless access to trade credit solutions and funding for UAE businesses trying to establish their presence in the international market. Under the MoU, both institutions collaborated to support UAE-based exporters through various financing and funding solutions—including credit risk management solutions, export financial tools, surety bonds, export financing, aircraft financing, corporate financing, bond support and Letters of Credit Confirmation.
About Etihad Credit Insurance
Etihad Credit Insurance (PJSC) was established by UAE Federal Government and its founders, the governments of Abu Dhabi, Dubai, Ras Al Khaimah, Fujairah and Ajman. The company started its operations in February 2018. ECI plays a catalyst role in supporting the UAE’s non-oil exports, trade, investments and strategic sectors development, in line with UAE Vision 2021 agenda.
It is tasked to accelerate and sustain national economic diversification as well as support the export and re-export of UAE goods, works, services, and the foreign investments of the UAE businesses as well as support the exporters in the domestic trade through a range of export credit, financing and investment insurance products.
To provide UAE businesses with solutions that meet their growth objectives locally and internationally, ECI builds a comprehensive platform of strategic partnerships across government, insurers, re-insurers, brokers, banks and lenders, regional and international Export Credit Agencies, governments and trade promotion agencies in addition to world organisations for economic development.
ECI has also been assigned Insurance Financial Strength (IFS) Rating and an Issuer Default Rating (IDR) of AA- (Very Strong) with Stable Outlook from Fitch Ratings.
About Standard Chartered Bank
We are a leading international banking group, with a presence in 60 of the world’s most dynamic markets, and serving clients in a further 85. Our purpose is to drive commerce and prosperity through our unique diversity, and our heritage and values are expressed in our brand promise, Here for good. Standard Chartered PLC is listed on the London and Hong Kong Stock Exchanges as well as the Bombay and National Stock Exchanges in India.
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