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Reminder: INFORMATION EVENING TREASURY MANAGEMENT & CORPORATE FINANCE
| 12-11-2018 | Vrije Universiteit Amsterdam |
On Thursday 15 November 2018 the Information Evening for the Postgraduate programs, including the Treasury Management & Corporate Finance program, will take place at the Vrije Universiteit Amsterdam.
Anyone interested in this program is welcome to get an impression and to get to know the people involved.
You are welcome as of 18.00 hours. The program for Treasury Management & Corporate Financestarts at 20.30 hours. Afterwards there will be plenty of opportunity to ask questions.
We herewith kindly request you to inform potential candidates in your office and/or your network, about this meeting.
Program Information Evening 15 November 2018:
18.00 hrs. Walk in with coffee / tea and sandwiches
18.30 hrs. Investment Management
19.30 hrs. Risk Management for Financial Institutions
20.30 hrs. Treasury Management & Corporate Finance
Location
Vrije Universiteit Amsterdam, De Boelelaan 1105, Amsterdam
Room Agora (main building, 3rd floor)
VU Accessibility
Registration and information
Myrthe Scholze
020-598 2171
[email protected]
https://ee.sbe.vu.nl/nl/over-vu-executive-education/voorlichtingsdagen/index.aspx
Sincerely,
Herbert Rijken and Robert Dekker
SANCTIONS IN LOAN AGREEMENTS; A BORROWER’S PERSPECTIVE
| 8-11-2018 | Solusius Treasury Lawyers | treasuryXL |
Introduction
Compliance with sanction laws is an important topic in loan documentation. In view of increased sanction legislation, intensified enforcement and huge potential fines, lenders insist more and more on stringent clauses to ensure compliance with sanction laws by borrowers. While some years ago sanctions were no topic at all, lenders currently include sanction related representations, general covenants and information covenants in loan agreements. Many lenders fear reputational risk if a client violates sanctions and lenders tend to draft sanctions clauses that are more restrictive and broader than the sanction laws applicable to the borrower or even to the lender itself. Such broad sanction clauses may hamper the borrower in its ordinary course of business and increase the risk of an event of default under the loan agreement considerably. A description of sanction laws and the specific impact thereof for corporates are outside the scope of this article; here only sanction wording in loan agreements will be addressed a borrower may be confronted with.
Negotiating sanction clauses
Unfortunately, negotiating sanction wording tends to be difficult. Lenders often argue that the proposed wording is standard wording for the bank(s) and that deviations cannot be made. Although this argument is used, negotiation is always possible. It is important to bear in mind that there is no market consensus about sanction requirements; each bank has its own sanction policy and its own preferred wording in loan agreements. The standard sanction wording of the bank acting as documentation agent is often used as a starting point when drafting sanction wording. Other lenders in the syndicated or clubbed transaction may subsequently add additional requirements to comply with their internal procedures. Sanction clauses therefore may include duplicate requirements and could be rather restrictive for the borrower. However, if the suggested wording is jeopardising business opportunities or is too burdensome for the borrower, even companies with limited negotiating power can negotiate the sanction clauses to become more workable.
Sanction clauses and LMA
The Loan Market Organisation (‘LMA’) has not published recommended sanction provisions in any of its forms of facility agreement. In 2014 the LMA recommended in its Guidance Note to consider to include a representation that the borrower is not a target of sanctions and an undertaking to provide lenders with comfort that the proceeds of the loan will not be used in any way which would violate any applicable sanctions regime. The LMA states that the precise wording of any such representation and undertaking will depend on the transaction, the parties involved and the sanctions regime(s) that the parties wish to address. Unfortunately, these days many lenders incorporate much broader sanction related clauses in all loan agreements, independent of the situation of the borrower.
Although there is no market consensus about sanction wording in loan agreements, there are many similarities between the sanction wording required by lenders. Sanction wording is generally included in the following (LMA) sections of the loan agreement: definitions, representations, general covenants, information covenants and event of default. When negotiating sanction wording the following elements may need to be negotiated: applicable sanctions, scope of compliance, sanctioned person, sanction investigation, use of loans, use of bank accounts, compliance procedures, materiality and consequence of breach of sanction obligations. In the paragraphs below each of these topics will be addressed.
The full article can be read on the website of Solusius Treasury Lawyers.
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Bank Relationship Management solutions by Vallstein
| 6-11-2018 | Vallstein | treasuryXL |
Founded in 2000, Vallstein has a multinational team of experts dedicated to developing and implementing cutting edge financial technology solutions to help corporations constantly improve their BRM.
Having calculated and analyzed thousands of Wallets over 18 years, Vallstein brings together a unique combination of big data, innovation, analytical capabilities and banking knowledge. This provides the best practice in the optimization of bank relationships.
Bank Relationship Management
BRM is nowadays an integral part of sound financial management, just like finance and liquidity planning.
Pro-active management of bank relationships mandates being a level player, understanding the core principles of the Basel Rules that drive bank behavior and being able to assess accurately the implications for each individual bank relationship.
WalletSizing®
No more black box. Transparency in terms of how much banking revenues a corporate client generates for the bank(s) and how profitable this revenue actually is for the bank. Welcome to WalletSizing® – the best practice in BRM.
Vallstein software solutions enable ongoing monitoring, reporting and reconciliation of banking costs, ensuring embedded pro-active control and compliance with a company‘s banking policies. The WalletSizing® system provides a complete data view and in-depth analysis on all banking relationships.
This insight is essential in order to be able to achieve constructive optimization of a banking landscape and establish a true win-win for you and your banks, in which the banks will benefit from relationships that are based on stable, transparent and strategic partnerships with a fair, but not excessive, return.
The depth and quality of a WalletSizing® approach is fundamentally more comprehensive than an analysis that is just based on assessing banking costs and fees and awarded transaction volumes only. Taking into account hidden revenues and associated capital requirements under the applicable Basel Rules, across all banking products and services used, and including relevant Wallet-benchmarks in the analysis is what truly differentiates WalletSizing® from more traditional treasury consulting or spreadsheet-based comparison of bank conditions.
Winner best BRM Solutions 2018 global
The CFI.co judging panel declared Vallstein winner of the 2018 Best Bank Relationship Management Solutions Global Award.
For more information about the solutions Vallstein offers you can contact Salco Herschberg at [email protected] or visit their website.
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