White & Case advises Deutsche Bank on IFC’s inaugural trade finance synthetic securitisation

Global law firm White & Case LLP has advised Deutsche Bank as arranger and placement agent on the International Finance Corporation’s (IFC) inaugural Trade Finance Synthetic Securitisation, a first of its kind transaction that mobilises private capital to support trade and jobs in emerging markets.

The reference portfolio consists of short-term trade assets originated under IFC’s Global Trade Finance Program (GTFP) with a total value of US$500 million and an average tenor of six months. Notably, more than half of the underlying exposures are concentrated in low-income and fragile and conflict-affected states, reflecting IFC’s increased focus on the most challenging markets.

The transaction comprises a US$340 million senior tranche, a US$110 million mezzanine tranche and a US$50 million junior tranche. The senior and mezzanine tranches were placed privately on an unfunded basis with five investors – Deutsche Bank, Santander CIB, AXA XL, AXIS Capital, and Liberty Specialty Markets – with Deutsche Bank acting as arranger and placement agent for both tranches. The junior tranche was placed separately with Newmarket.

The transaction is structured over a three-year horizon with a two-year replenishment mechanism to ensure that private risk participation is available to support new trade flows for up to three years.

The White & Case team which advised on the transaction was led by partners Ingrid York (London) and Dennis Heuer (Frankfurt) and included associates Anna Spentzou (London), Bernhard Gaertner (Frankfurt) and Charles Linel (Paris).

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