Landmark $50 million Deal
In a Landmark $50 million Deal Supporting Cross Border Trade, ATI Covers a Global Manufacturer Operating in East Africa
NAIROBI, 7 November, 2012 – What do you do if you are a global company looking to sell your goods throughout East Africa while avoiding the potential pitfalls of default risk related to cross-border transactions? For an Asian-based multinational supplier of industrial chemicals and raw materials to the plastics industry the solution was simple. They instructed their East African branches to approach ATI for cover against payment default risks on 225 buyers spread over Kenya, Tanzania and Uganda. The deal will see ATI insure $50.5 million worth of turnover – the largest volume ever insured on a trade credit transaction by ATI.
Trade Credit Risk Insurance in Africa has several built-in challenges. The primary challenge is obtaining accurate financial information on local companies. This is essential in order to assess whether the company is able to pay your client. Typically, the process of obtaining credit information on one company may take weeks and even months. So, understandably the prospect of covering 225 buyers could potentially be tricky.