Trade and commodity finance

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Negative pledges

This Practice Note examines:•why negative pledge clauses are used in commercial transactions •the consequences of breaching negative pledge...

Term Loan B facilities

This Practice Note discusses Term Loan B (TLB) facilities which frequently appear as a tranche of senior facilities in syndicated loans in leveraged...

Common financial covenants

This Practice Note explains certain common financial covenants used in commercial finance transactions including:•minimum net worth test•gearing...

Loan Market Association (LMA)—news on documentation [Archived]

This Practice Note is an archive of news from the Loan Market Association (LMA) on LMA documentation and related topics. It covers LMA updates from...

Practice notes

Foreign exchange (FX) derivatives

BREXIT: As of 31 January 2020, the UK is no longer an EU Member State, but has entered an implementation period during which it continues to be...

9th Nov

Practice notes

Intercreditor agreement—key provisions

This Practice Note provides an introduction to intercreditor agreements and their key provisions. This Practice Note:•explains the purpose of having...

9th Nov

Practice notes

Incremental debt flexibility or accordion features

What are incremental facilities?An incremental facility is feature included in a credit agreement where, subject to meeting certain pre-agreed...

Produced in partnership with Osborne Clarke 9th Nov

Practice notes

Fixed and floating charges

There are four main types of security available under English law: •mortgage•charge•pledge, and•lienThis Practice Note explains:•the nature of a...

9th Nov

Practice notes

ISDA definitions

The vast majority of derivative transactions are documented by standard documentation developed and published by the International Swaps and...

9th Nov

In-house

Practice notes

Synthetic securitisations

BREXIT: As of 31 January 2020, the UK is no longer an EU Member State, but has entered an implementation period during which it continues to be...

9th Nov

Practice notes

Assignments by way of security

Assignments by way of security can take different forms and it is important to understand how they are created and their effect. Security over choses...

9th Nov

In-house

Practice notes

Crystallisation of floating charges

The key feature of a floating charge is that, until it crystallises, the chargor is entitled to deal with the charged assets in the normal course of...

9th Nov

Practice notes

Third party security

In many commercial finance transactions, lenders expect to be given some form of credit support to increase their confidence in being able to recover...

9th Nov

Practice notes

Bridge to bond facilities

What are they?A bridge to bond facility is a type of acquisition financing where the buyer requires the certainty of a fully committed financing...

Produced in partnership with Cleary Gottlieb and Ian Chin of Morrison & Foerster 9th Nov

Practice notes

Key issues in loan transfers

There are times when a lender might want to get back some of the money it has lent to a borrower before the borrower is due to repay it.If the...

9th Nov

Practice notes

Market disruption clauses in facility agreements

In summary, a market disruption clause sets out how interest is calculated for a loan if a lender’s cost of funding the loan is in excess of London...

9th Nov

Practice notes

Secondary debt trading—completing the trade confirmation

The majority of secondary debt trades are conducted by telephone or by email. Following the trade call or email exchange, the parties will document...

9th Nov

Precedents

Director’s certificate for a bilateral loan: borrower

[insert date]To:[insert full name and address of lender]Dear [insert full name of lender]I am a director of [insert full name of borrower] (the...

9th Nov

Practice notes

Guide to completing the ISDA Schedule

Coronavirus (COVID-19): This Practice Note contains information on subjects potentially impacted by the government and regulators' responses to the...

9th Nov

Practice notes

Taking security over uncertificated shares held in CREST

Shares are commonly offered as security for a loan in commercial lending transactions.Practice Note: Taking security over shares explains how to take...

9th Nov

Most recent Trade and commodity finance content

Practice notes

Form of promissory notes and bills of exchange

Form of promissory notes and bills of exchangeA bill of exchange is a paper instrument that is used to transfer money from one person to another...

Produced in partnership with Ed Bellamy, Marta Bishop and Jad Hussain of Paul Hastings (Europe) LLP 25th Nov

Practice notes

Shipping finance—Export Credit Agency financing

BREXIT: As of 31 January 2020, the UK is no longer an EU Member State, but has entered an implementation period during which it continues to be...

Produced in partnership with Tony Rice of HFW, Gudmund Bernitz of HFW and Aysha El-Kaddah of HFW 25th Nov

Practice notes

Asset-based lending

COVID-19 (Coronavirus): Note that pursuant to the Taking Control of Goods and Certification of Enforcement Agents (Amendment) (Coronavirus)...

Produced in partnership with DLA Piper (UK) LLP 25th Nov

Practice notes

Borrowing base facilities—taking security

Borrowing base facilities ('BB Facilities') are secured on the assets forming the borrowing base, which consist of:•goods in storage or in...

Produced in partnership with Dentons UK and Middle East LLP 25th Nov

Practice notes

Borrowing base facilities—key terms in the facility agreement

A borrowing base facility ('BB Facility') is a working capital line designed to provide short term liquidity by way of advances or the issue of trade...

Produced in partnership with Dentons UK and Middle East LLP 25th Nov

Practice notes

ECGD—dealing with a public body

BREXIT: As of 31 January 2020, the UK is no longer an EU Member State, but has entered an implementation period during which it continues to be...

25th Nov

Practice notes

ECGD's supplier credit loan facility

The Export Credits Guarantee Department (ECGD) is the UK's official export credit agency. It operates under the name UK Export Finance.Its purpose is...

25th Nov

Practice notes

Characteristics of commercial letters of credit

Commercial letters of credit (also known as traditional letters of credit or L/Cs) are used in relation to the movement of goods in the context of...

25th Nov

Practice notes

Characteristics of standby letters of credit

Standby letters of credit are a type of letter of credit.The common feature of all letters of credit is an undertaking by a bank to pay the...

25th Nov

Practice notes

ECGD's buyer credit facility

The Export Credits Guarantee Department (ECGD) is the UK's official export credit agency. It operates under the name UK Export Finance.Its purpose is...

25th Nov

In-house

Practice notes

Standby letters of credit—standard rules and practices

Coronavirus (COVID-19): The ICC has issued a guidance paper on the impact of COVID-19 on trade finance transactions issued subject to ICC rules. For...

25th Nov

Practice notes

Export Credit Agencies and export credit support

BREXIT: As of 31 January 2020, the UK is no longer an EU Member State, but has entered an implementation period during which it continues to be...

Produced in partnership with Dimitri Papaefstratiou, Joseph Lam and Wen Liu of DLA Piper (UK) LLP 25th Nov

Practice notes

Coronavirus (COVID-19)—implications for trade and commodity finance transactions

This Practice Note sets out the key issues relevant to trade and commodity finance during the coronavirus (COVID-19) outbreak.For information on the...

25th Nov

COVID-19

Practice notes

Bills of exchange—structure and parties

Bills of exchange are negotiable instruments that represent an unconditional promise by one party to pay another party, in accordance with the terms...

Produced in partnership with Ed Bellamy, Marta Bishop and Jad Hussain of Paul Hastings (Europe) LLP 25th Nov

Practice notes

Promissory notes—structure and parties

A promissory note is a type of bill of exchange (for more information, see Practice Note: Bills of exchange—structure and parties) and accordingly...

Produced in partnership with Ed Bellamy, Marta Bishop and Jad Hussain of Paul Hastings (Europe) LLP 25th Nov

Practice notes

Project finance—Export Credit Agencies, multilateral lenders and development finance institutions

Projects are typically financed on a limited recourse basis through one or more sources, including:•government contributions•senior debt provided by...

Produced in partnership with Dimitri Papaefstratiou, Joseph Lam and Wen Liu of DLA Piper (UK) LLP 25th Nov

Practice notes

Commodity repo transactions and true sale considerations

Commodity repurchases (repos) are a common alternative method of financing. There are a number of advantages for both the financier and a commercial...

Produced in partnership with Sullivan 25th Nov

Practice notes

Incoterms for trade finance lawyers

What are Incoterms and what is their origin?Incoterms—an abbreviation of 'International Commercial Terms'—are a set of globally recognised terms and...

Produced in partnership with Sullivan 25th Nov

Practice notes