Deutsche Bank today signed a memorandum of understanding (MOU) with Eastern and Southern African Trade and Development Bank (PTA Bank) to offer GSM-102, a program guaranteeing credit to encourage financing of commercial exports of US agricultural products, while providing competitive credit terms to buyers.
Credit guarantees are intended to promote exports to buyers located in developing countries who have the financial strength and foreign exchange capabilities to make scheduled payments. US Department of Agriculture’s Foreign Agricultural Service will administer the program on behalf of the Commodity Credit Corporation, which issues the credit guarantees.
PTA Bank will issue irrevocable US dollar denominated letters of credit for the import of eligible agricultural products from the US and Deutsche Bank will advise, confirm and negotiate these letters of credit as well as provide post-shipment financing in accordance with the GSM-102 program regulations.
Deutsche Bank also provides other trade finance services, including letters of credit confirmations and letters of credit post-financings outside of the GSM-102 program.
PTA Bank’s mandate is to finance and foster trade, socio-economic development and regional economic integration across its Member States throughout Eastern and Southern Africa. It offers a broad range of products and services, across both the private and public sectors, including debt, equity and quasi-equity as well as guarantees. The Bank’s investments cut across agriculture, trade, industry, infrastructure, energy and tourism, among others and are made on a commercial basis and sustainability principles.
“Participation in this program is important for PTA Bank and will give our importers access to agricultural products from the US,” said Mr.Tadesse Admassu, President of PTA Bank. “Deutsche Bank is one of the most recognized and knowledgeable providers of this program and cooperating closely with Deutsche Bank will allow PTA Bank to further advance its mission of fostering economic and trade development in the region.”
“We are pleased to offer this program to PTA Bank,” said Ulf-Peter Noetzel, Head of Trade Finance Financial Institutions - Western Europe & Africa, Global Transaction Banking, at Deutsche Bank. “As the leading bank for GSM-102 business in Africa, and in close coordination with the Commodity Credit Corporation and the US Department of Agriculture’s Foreign Agricultural Service, we look forward to providing PTA bank with the highest level of service.”