Trading in Emerging Markets

Pursuing international business in Emerging Markets is challenging, high-risk and potentially very rewarding to those who succeed. At TD Global Trade Finance (GTF), we have proven expertise and extensive experience in facilitating and supporting trade finance needs in the Emerging Markets.

We are also selectively active in a higher-risk category sometimes referred to as LDC Trade, or trade with "Least Developed Countries".

Risk mitigation concerns are at the core of Emerging Markets Trade, and TD GTF maintains an excellent network of partners to support you in the higher-risk Emerging Markets. Our experts have worked directly with numerous International Development Agencies active in these markets, such as the World Bank, the UN, Canadian International Development Agency (CIDA) and several of the Multilateral Development Banks active all over the world. We can assist you in structuring financing solutions that meet the unique challenges of Emerging Markets Trade.

A Letter of Credit can serve as an effective trade payment and financing instrument in Emerging Markets, particularly if it is a "Confirmed Letter of Credit " . Where a L/C typically and ultimately holds a reliable payment promise from the bank issuing the Credit, a Confirmed L/C adds an equally reliable, and independent, payment promise from the Confirming Bank, which is usually located in the Exporter’s country.
Given the potentially significant risks associated with doing business in Emerging Markets, Exporters can obtain various types of risk insurance, from public sector agencies such as Export Development Canada and US Ex-Im Bank or from various private sector underwriters. Government export credit and export insurance agencies are in effect adding the guarantee of their respective countries, and as such, these forms of insurance or guarantee are highly valued in the international marketplace. TD GTF is well positioned to assist you in obtaining certain types of coverage.

Transactions, which combine several key objectives and require a mix of financing, payment facilitation, risk mitigation and trade advisory support, are often referred to as "Structured Trade Finance" – a discipline which combines the most complex and value-added elements of international trade finance, and one where TD GTF is well-versed.

TD GTF can be an invaluable partner to traders pursuing business in Emerging Markets. Whether we assist in assuring that the appropriate trade financing tools are applied, support your risk mitigation needs, or assist with complex International Development opportunities, you can count on our team of professionals. Please contact us to discuss further.