Editor's foreword

Following up on our first “Deals of the Year” issue in February 2004, we now introduce our inaugural awards issue. This is something our readers have requested for quite some time now. Our only hesitation was getting it right; we wanted to use the best method possible to determine the winners. In the end, we decided to go for the simplest – and most democratic – approach: post the ballot on the TFR website, let readers log on to vote and may the best institution win. We made every effort to feature categories that cover the whole spectrum of trade-finance competences, both from a product and geographic perspective.

The success of this system, and the enthusiastic market reaction to the advent of our awards, means that this will be the first of many more to come.

You’ll find the winners listed in this issue, along with the reasons they topped their respective categories. In some cases, it was because of geographic reach, in others, market penetration, product proficiency, deal volume, in-depth knowledge, niche expertise or some combination of these factors. For some, the winning of a TFR Award reconfirmed domination of a particular space, such as Denton Wilde Sapte in the legal-services category. In others, such as Fortis Bank in structured commodity finance, the results of the vote seemed to signal an early recognition of the institution’s efforts to ramp up activities and strengthen capabilities in a certain product area.

Some of the results were surprising; others less so. ABN Amro has the distinction of winning the most awards, at three, followed by Standard Bank with two. The runners-up, though not profiled in these pages, have been posted on our website (www.tfreview.com).

We’d like to offer our congratulations to all of the winners and our thanks to all of our readers who participated in the voting. Without this tremendous support, this special awards issue would not have been possible.

- Courtney Fingar

Features

TFR Awards 2004 Free
TFR is proud to announce the winners of our first-ever batch of trade-finance awards. Here, we applaud the best providers of a range of services, from commodity finance to legal services, as well as the best trade banks in Africa, Central Asia, Central and Eastern Europe, East Asia, Latin America, the Middle East and Russia.

Who needs dollars? Free
The low value of the US dollar has had less impact on trade finance than other, more structural foreign-currency changes. One is a growing preference of firms in emerging markets for local-currency financing. While tenors for these deals are still too short, banks and multilateral institutions are working together to try to make local-funding markets more liquid. Erika Morphy reports.

Scared yet? Free
The trade-finance market has remained fairly sanguine throughout the Yukos ordeal, but this summer’s raft of Russian bank closures, a run on deposits and at least one big trade default have rattled some once-steely nerves. Seven-percent growth or not, is it time to re-assess Russian risk? Courtney Fingar reports.

The laws of money Free
Russia’s new law on foreign-currency controls, passed in December 2003, has come into effect, bringing the country closer to full convertibility of the rouble and signalling a major policy shift with regard to licensing. Greg Potts, senior solicitor at Denton Wilde Sapte in London, provides a detailed explanation of the law and what it means for trade finance.

Staying the course Free
Tight competition in an oversaturated banking market has made consolidation the only sensible, if painful, remedy, and the German economy is so deep into the doldrums it is difficult to see a way out. And, for the many landesbanks, the impending loss of their state guarantees looms large. But German banks remain resolute and ready to adapt, as Courtney Fingar reports.

Going soft Free
Less glamorous than oil and metals – and certainly with lower prices – soft commodities do not generate near as much excitement or interest as the hard variety. But while many banks, especially smaller and regional ones, are pulling back from soft-commodity financing, those who remain committed to the space continue to churn out solid deals and seek out new structures. Erika Morphy reports.

Harnessing technological innovation Free
Technology and advanced communications have improved efficiencies in almost every business process. Yet the trade processes that account for the buying and selling of goods and raw materials – which are at the heart of a business – are still largely manual processes. David Matthews, senior vice president for JPMorgan’s global trade systems, discusses how financial institutions can take advantage of innovative technology to improve the trade processes that they offer to their clients.

Regulars

Market view: Kurt Cavano Free
Global trade will reach $14tn by 2005, with each shipment requiring about 40 documents. It’s no wonder finance departments are being overwhelmed by paperwork. Processing all these documents not only taxes a trading company’s time, it also adds 5% to global trade’s total costs, while obscuring visibility into working-capital requirements. As a result, companies are re-evaluating the efficiency of their order-through-payment cycle, also known as the financial supply chain. Many, in turn, are looking to outsource.

Letter from Hong Kong: David Sullivan Free
So what is happening in Hong Kong these days? I remember back in 1996 making $23m (not me, the bank!) from a commodity trading portfolio of many steel traders. In 1999, by the time I left, we were making around $4m – one of the reasons I was kicked out, I guess.

Company profile: Paraguay’s magic beans Free
Paraguayan companies have historically had limited access to international markets and finance, mainly as a result of the risks associated with the recession-strapped country. In June 2004, this changed when ABN Amro approved credit facilities for the Favero Group, the largest individual soybean producer in Paraguay and one of the largest traders. Kathleen Williams reports on the company’s growth strategy and vision for the Paraguayan soybean trade.

Personal profile: The man of the moment Free
In the TFR Awards 2004, Lucio Matassoni – assistant general manager and head of forfaiting at SMBC Europe, and new chairman of the International Forfaiting Association – was voted “Personality of the Year”. Courtney Fingar finds out about his plans for the IFA, the controversial decision to move the annual conference from Istanbul, and how he views the future of forfaiting.

Emerging-market debt pricing Free
Omni Whittington Commentary, July 2004

Country-risk appetite Free
The analysis from Standard Bank London: