BAFT Updates English Law and New York Law Master Participation Agreements (MPAs) with LIBOR Amendments

November 5, 2021 by [email protected]

With the cessation of LIBOR and the transition to alternative reference rates, BAFT has prepared amendment agreements to the English Law and New York Law Master Participation Agreements (MPAs).

WASHINGTON — As the trade finance industry prepares for the cessation of LIBOR and the transition to alternative reference rates, BAFT together with ITFA and Sullivan & Worcester have prepared amendment agreements to the 2008 (English Law), 2010 (New York Law), 2018 (English Law) and 2019 (New York Law) Master Participation Agreements (MPAs). Access the new amendment agreements here.

“The suite of MPAs are industry standard documents that are used by banks and their counterparties around the globe to facilitate the buying and selling of country and bank trade-related assets.” said Tod Burwell, President & CEO of BAFT, “Updating the widely used MPAs is an important element for trade finance to swiftly transition to alternative reference rates.”

“The LIBOR transition touches multiple areas of trade finance not least distribution. Producing a simple and commercially rational solution for one of the most widely used documents in distribution, the MPA, was therefore crucial. I am therefore very pleased that the two associations, BAFT and ITFA, working with law firm Sullivan & Worcester were able to produce this timely document.” said Sean Edwards, Chairman of ITFA.

The amendment agreements can be used to make the changes to existing MPAs as well as for new agreements. The approach taken is to replace the references to LIBOR by references to relevant central bank rates for those currencies for which LIBOR is currently quoted. The changes only deal with LIBOR replacement and not with any other issues or developments since each MPA was published e.g. bail-in.

Geoffrey Wynne, Partner & Head of Trade and Export Finance Group at Sullivan & Worcester said, “With the direction of those involved at BAFT and ITFA we have provided a pragmatic solution covering how to change all the existing BAFT MPAs where new ones are entered into, and Amendment Agreements to amend the existing ones where they are continuing. We hope market participants will find these useful.”

It is important to note that the amendment agreements do not amend the rate in any participated transactions and only in the MPA itself. Participated transactions can use a variety of rates, as specified in an offer. For those wishing to enter into fresh agreements reflecting the changes and for new MPAs in the future, updated versions of the various BAFT MPAs are available for members and non-members here.

BAFT Media Contact:
Blair Bernstein
Director, Public Relations
[email protected]
+ 1 (202) 663-5468

November 4, 2021 by [email protected]

Via Global Trade Review

BAFT (Bankers Association for Finance and Trade) has appointed Scott Stevenson as senior vice-president of trade, following the retirement of industry veteran Stacey Facter.

Stevenson joins from AF Capital Partners, where he was a senior advisor providing expertise on structured and project finance for developing banks in emerging markets.

He previously spent more than 14 years at the International Finance Corporation (IFC), including a role as senior global manager for trade and supply chain solutions, and has also held positions at International Financial Consulting and the World Bank Group.

Stevenson was also previously regional head of financial institutions at Standard Chartered Bank in Singapore, and between 2017 and 2020 was chief executive of Savia Trade Management Company, an Africa-focused financial intermediary that directly targets smallholder farmers and agri SMEs.

He takes over the role previously held by Facter, who stepped down after more than eight years in the position. Prior to that she worked in a variety of trade and securities roles at JP Morgan over a period of over 11 years.

BAFT’s president and chief executive Tod Burwell hails Stevenson’s “wealth of experience in trade”.

“His diverse geographic experience, coupled with his commercial banking and multilateral development banking background, is a great foundation to provide our members around the world with the insight, tools and resources they need to help them succeed in trade finance,” he says.

November 1, 2021 by [email protected]

BAFT has named Scott Stevenson as its new Senior Vice President of Trade. Stevenson will lead the association’s trade portfolio.

WASHINGTON – BAFT, the leading global financial services association for international transaction banking, has named Scott Stevenson as its new Senior Vice President of Trade. Stevenson will lead the association’s trade-focused policy, practices, and education initiatives, and will support its trade-related councils and committees.

“Scott has a wealth of experience in trade, and we are delighted to have him as a part of the BAFT team,” said Tod Burwell, President & CEO of BAFT. “His diverse geographic experience, coupled with his commercial banking and multi-lateral development banking background, is a great foundation to provide our members around the world with the insight, tools and resources they need to help them succeed in trade finance.”

Stevenson replaces Stacey Facter, who retired from BAFT in the same role overseeing all of the trade-related activities of the association. Prior to joining BAFT, Stevenson was a senior advisor for AF Capital Partners, which provided expertise in emerging market structured and project finance for development banking institutions. For two years, he consulted development banks and export credit agencies following a 17-year career at the International Finance Corporation (IFC) and the World Bank Group in various trade and investment project leadership roles. Before joining the IFC, Stevenson was the regional head of financial institutions at Standard Chartered Bank in Singapore. He earned his bachelor’s degree from Colgate University, and his MBA from York University.

BAFT Media Contact:
Blair Bernstein
Director, Public Relations
[email protected]
+1 (202) 663-5468

October 13, 2021 by [email protected]

BAFT CONNECT, a subscription-based virtual networking community, will open October 20, 2021.

WASHINGTON — BAFT, the leading global financial services association for international transaction banking, today announced a new, virtual transaction-banking networking club set to launch October 20. BAFT CONNECT will be a subscription-only service open to members of the transaction banking community for networking, shared problem solving and content exchange.

BAFT CONNECT networking sessions will be held on the third Wednesday of every month and will include presentations from expert speakers, as well as small group roundtable discussions on developing industry issues. Members will have the ability to network via video and message chat with other subscribers and guests similar to an in-person networking reception.

Each monthly session will be two hours long and offered at two different times to accommodate different time zones and the global nature of the transaction banking community.

“With the absence of in-person networking throughout the last year, we saw a real need to help connect those within the transaction banking industry,” said Tod Burwell, President & CEO, BAFT. “BAFT CONNECT will be a great conduit for collaboration and will allow professionals around the globe to participate in a way that is both convenient and engaging, even after in-person meetings resume.”

To participate in BAFT CONNECT, individuals must register for a subscription and complete a member profile on the platform that includes their title, organizational details, and can include a photo and connectivity to LinkedIn and other social media accounts. BAFT members will receive a special member subscription rate and can invite guests to the club for free to an individual session. Non-BAFT members are also welcome to join.

Industry professionals interested in learning more about BAFT CONNECT are invited to participate in an open house on its launch day, October 20, but must register by October 15.

BAFT Media Contact:
Blair Bernstein
Director, Public Relations
[email protected]
+ 1 (202) 663-5468

September 7, 2021 by [email protected]

Published on September 7, BAFT is pleased to officially announce the release of the BAFT 2021 Annual Review (Digest).

BAFT celebrated its 100th Anniversary in June 2021, giving us an opportunity to appreciate the impact the organization has had on the industry over the past century, and consider how we move forward to the next.

The pandemic continued to impact our daily lives and how we conducted business, with a seemingly permanent impact on how we work, how we connect, and how we prioritize. Digital adoption accelerated in order to keep commerce flowing, and as humans, we adapted. BAFT hosted more than 5,000 people at our virtual programs, greatly increasing the connectivity across the globe. We launched a new website, produced more white papers than ever before, developed new online training programs, and hosted the largest class to date in our Future Leaders Program. Our advocacy has successfully moved forward issues related to the LIBOR transition, supply chain finance and other topics of interest.

As we navigate through the pandemic-triggered transformation, we look forward to developing more educational opportunities, newer ways to connect our global community, and continued advocacy and thought leadership. We appreciate your continued support and engagement.

To read the BAFT 2021 Annual Review (Digest), click here.

BAFT Media Contact:
Blair Bernstein
Director, Public Relations
[email protected]
+ 1 (202) 663-5468

August 24, 2021 by [email protected]

Commodities purchases worth around $43 million from Peru under the initiative of Mitsubishi Corporation (Americas) were made over multiple transactions using Skuchain’s currency agnostic blockchain for digital trade assets, which were used for payment through Mizuho Bank.

MOUNTAIN VIEW/SINGAPORE/TOKYO — Metal commodities worth around $43 million were purchased from one of the largest mines in Peru under the initiative of Mitsubishi Corporation (Americas). The purchases were made over multiple transactions using Skuchain‘s currency agnostic blockchain for digital trade assets that were used for payment through Mizuho Bank.

The digital asset issued by the buyer was a Distributed Ledger Payment Commitment (DLPC), a digital negotiable instrument with a full-fledged legal framework published by BAFT (Bankers Association for Finance and Trade), the largest trade association for transaction banking.

Skuchain’s blockchain managed the lifecycle of the digital asset from issuance to discharge and triggered secure payment instructions to Mizuho. This makes open account trade transactions frictionless and with a similar level of security as Letters of Credit, Guarantees and other traditional trade instruments, at a reduced cost.

Mitsubishi Corporation (Americas) appreciated the precise control this provides the company over its counterparty payments and seeks to expand the usage of blockchain managed DLPCs to underwrite its own transactions as well as encourage its customers to replace current trade finance instruments with the DLPC. By placing control over trade finance arrangements squarely in the hands of the enterprises that need it while tapping into vast pools of capital at banks and other financial institutions gives the company more liquidity and trading capacity.

“People have talked about Blockchain and supply chain for at least 5 years. We just moved past the talk stage to actually move thousands of tons of a physical commodity across 10,000 miles backed by bank-acceptable digital assets worth $43m on our blockchain and we did it faster, cheaper, and more secure than what came before,” said Srinivasan Sriram, Founder and CEO at Skuchain.

“We are very honored to collaborate with Skuchain and Mizuho Bank to conduct the first DLPC transactions in real trading. We would like to continuously pursue further opportunities to apply DLPC to provide better services to our customers and partners,” said Yuichiro Yoshinari, Director, Innovation and Design Thinking at the Silicon Valley Branch of Mitsubishi Corporation (Americas).

“We are honored to have conducted the first DLPC transactions with Mitsubishi Corporation (Americas) and Skuchain. We would like to accelerate the improvements in our ability to provide services to meet customers’ diverse needs by utilizing cutting-edge technologies in trade finance,” said Yoshisuke Maeda, General Manager at Mizuho Bank, Global Transaction Banking Department.

Tod Burwell, President & CEO, BAFT stated “Digitization of trade requires standards as well as supporting legal framework. We were delighted to work with our members to develop the DLPC for this purpose, and even more excited that this has been successfully put into practice to facilitate live transactions.”

About Mitsubishi Corporation (Americas) and its Silicon Valley Branch
Mitsubishi Corporation (Americas) is a wholly owned subsidiary of Mitsubishi Corporation, a global integrated business enterprise with 10 business groups that operate across virtually every industry. These include natural gas, industrial materials, petroleum and chemicals, mineral resources, industrial infrastructure, automotive and mobility, food, consumer, power, and urban development. The Silicon Valley Branch, which led this project, is an innovation hub that scouts and tests new technologies and startups to lead the company’s digital transformation. Learn more at https://www.mitsubishicorp.com/northamerica.

About Skuchain
Skuchain provides enterprises and banks a currency agnostic blockchain for global trade. Its platform powers value chains that leverage data and capital to achieve optimal resilience and flexibility. Skuchain’s solutions have been adopted across mining and minerals, food and agriculture, electronics, auto and finance in Asia, Europe and the US. Learn more at https://www.skuchain.com.

About Mizuho Bank
Mizuho Bank, Ltd. is a leading global bank with one of the largest customer bases in Japan, and an extensive international network covering financial and business centers around the world. Learn more at https://www.mizuhogroup.com/.

About BAFT
BAFT is the leading international financial services association whose membership includes large global and regional banks, service providers, and fintech companies headquartered around the world. BAFT provides advocacy, thought leadership, education, and a global forum for its members in transaction banking, including international trade finance and payments. For nearly a century, BAFT has expanded markets, shaped policy, developed business solutions, and preserved the safety and soundness of the global financial system.

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