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Non-Payment Insurance (NPI) : For Banks & FI's

Corporate Lending Structures Insured :

​Designed to insure trade or non-trade related Bank lending facilities including:

  • Trade Finance  (Purchase / Payables / Vendor / Supply Chain Financing) 

  • Working Capital Finance

  • Structured Trade and Commodities Finance

  • Import and Export Finance

  • Trade Receivables Factoring

  • Trade Receivables Securitization

  • Stand-by Letter of Credit (SBLC) Issuance Facilities

  • Traditional Asset-Based Lending

  • Capital Expenditure Financing

  • Project Financing (upto 20 years tenor)

  • Acquisition finance

  • Policy can be arranged for Single Situation or Portfolio Risks

  • Domestic and international markets (including emerging markets) catered

Non-Payment Insurance (NPI) is considered as the most ideal option for Credit Risk Mitigation for Banks & Financial Institutions providing a robust protection for any Non-Payment event by the Obligor including Force-Majeure Country Risks.

 

Banks, FI's and Investors use Credit Insurance to protect trade finance facilities, general corporate loans, letters of credit and project finance assets against risk of default on scheduled payments. 

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For Islamic Trade Finance Banks, we also structure Trade Credit Takaful to cater to Commodity Murabaha and Tawarruq (Reverse Murabaha) lending structures in a Sharia compliant fashion. 

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NPI policies are issued by highly rated (S&P / A.M. Best 'A+' and above) established insurers and are generally much less expensive than a letter of credit or BMRP or syndication structure. Coverage typically offers 90% indemnity and maximum limit of liabilities as high as $200MM per insurer for any single risk.

Inter-Bank or Bank to Bank Debts Obligations

(Trade & Non-Trade) Insured:

  • Letters of Credit (Confirmed, SBLC) - Counter-party & Country Limits

  • Bilateral Bank Loans

  • Loan Syndications

  • Bankers Acceptances

  • Trade Acceptances (drafts)

  • Trade Receivables Securitization

  • Diversified Payment Rights (DPR)

Key advantages of NPI:

  • Serves as Credit Enhancement collateral

  • Qualified Risk Mitigant providing Capital Relief under Basel II / III

  • Enhance deal economics & lending spectrum

  • Optimize competitive advantage by holding lending assets on books v/s down-selling or BMRP / Syndication

  • Conserve and reduce Risk Weighted Assets (RWA)

  • Enhance lending capabilities by facilitating Counterparty Obligor Risk and/or Country Risk aggregation management and relief

  • Expand client borrowing base to include exports trade receivables under traditional asset-based lending facilities.

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