Sovereign

Commercial Banks

Sovereign’s clients include most of the world’s major commercial banks, for whom we provide coverage against their inability to receive principal and/or interest repayments due to a wide variety of political and economic risk events, including:

- Foreign exchange moratoria or other forms of exchange controls implemented in the borrower's country, including foreign exchange shortages in the borrower's country;

- The inability and/or unwillingness of the Central Bank to process foreign exchange transactions in the borrower's country;

- Transfer restrictions implemented in the borrower's country;

- Expropriation or blockage of funds/bank accounts in the borrower's country;

- Expropriation of the borrower;

- War and/or political violence events or forced abandonment in the borrower's country;

- License cancellation or trade embargo;

- Non-payment of an Arbitration Award following the breach of government contractual obligations;

- On project-related loans made directly to central government entities or certain parastatals, Sovereign can insure commercial lenders against the risk of a non-payment.

Sovereign’s Lenders coverage can be issued for up to 100% of the amount of the loan (principal only or principal and interest), for tenors of up to 15 years, and can be used for the following types of transactions:

- Inter-Bank or Branch loans

- Branch capital contributions

- Project Finance loans

- Medium or long-term working capital or corporate finance loans

- Refinancings - Bridge Loans

- Private Placements or 144A transactions

- Future Flow transactions

- Loan Guarantees

- Leases or Asset-backed financings

- Currency Swaps

- Loans to sovereign or certain sub-sovereign entities

(Click here to see highlights of our transactions with Commercial Banks)