ABN AMRO Bank's Global Trade & Advisory (GT&A) group has been appointed to handle Caja de Ahorros de Valencia, Castellon y Alicante's (BANCAJA) and its subsidiary, Banco de Valencia's, import letters of credit (L/Cs) in favour of beneficiaries throughout Asia.

This trade payment partnership will utilise a L/C Re-Issuance model for financial institutions, whereby ABN AMRO Bank will re-issue all L/Cs in its own name, on behalf of BANCAJA Group, through its Hong Kong operations.

Global reach

A joint statement issued by both banks says they consider the Hong Kong Re-Issuance arrangement to be the first phase in the development of a trade relationship that will expand beyond Asia, thus helping BANCAJA to extend its global reach.

According to BANCAJA's Head of International Relations, Roberto Franci, the Hong Kong arrangement marks "a step forward in the collaboration projects BANCAJA has already initiated." Spain's fourth largest savings bank has already signed collaboration agreements with institutions in Europe and America.

Leveraging technology

BANCAJA has a strong market presence in Valencia - one of Europe's fastest growing industrial and commercial areas with a strong export orientation - and about 800 branches throughout Spain.

Netherlands-based ABN AMRO has more sophisticated cross-border trade products and some 175 years' experience in intermediating and financing global commerce.

GT&A operates in more then 60 countries and provides exporters and importers with risk mitigation, settlement, financing and information solutions, many of which utilise web-enabled solutions.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.