Our services take into account the changing nature of security collateral during the lifecycle of a trade finance transaction, requiring diverse risk-mitigation interventions by Cotecna.

Cotecna is flexible in its ability to perform specialized monitoring of inventories, growing crops, goods in process, cargo in transit, loading or discharging operations, etc., and seamlessly report to the financier the position ofthe security throughout the transaction lifecycle.

Cotecna has also noted the increasingly improving legal certainty environment in key emerging markets. This allows financiers to accept local structure and documentation for “legal control” in Basel II terms (Annex 6/Table 4), knowing that Cotecna will be providing the “knowledge of the trade process” through its on-site verifications. Legal control can be further enhanced by Cotecna’s handling and custody of local title, transportation or other documents on behalf of the financier.

The package addresses several other Basel II requirements:

• Realization of the collateral’s value in a “reasonable time frame” (§ 509), facilitated by the timely knowledge of any covenant breach with regards to the security provided by Cotecna;
• “Physical inspection” requirements (§ 522);
• Insurance (§ 510): a key complement to the security package. If it is absent or unsatisfactory, Cotecna can provide an extremely comprehensive cover by top-rated underwriters, including theft and misappropriation.

Another key advantage of Cotecna’s solution is the simplicity of the contractual documentation, allowing a quick implementation and low legal costs.

Also, flat fees make it an economical solution, especially for large transactions.

Other services can complement the package, such as sampling, quality testing, fumigation and local back office support.

In a nutshell, our Cotecna offering, combined with a perfected credit documentation and adequate insurance cover, constitutes an economical and effective risk mitigation solution.

Geographical cover:

• Americas: USA, Ecuador, Brazil, Bolivia, Uruguay, Argentina (others: please consult)
• EMEA: Russia, Ukraine, Kazakhstan, Turkey, Egypt, UAE (others: please consult)
• Asia: India, Thailand, Vietnam, China