We are pleased to announce that on January 29, 2007, ABCIB signed a Memorandum of Understanding (MoU) with Sumitomo Mitsui Banking Corporation Europe Ltd (SMBC), at their headquarters in London. The occasion was marked with a signing ceremony and was attended by senior representatives from SMBC and ABCIB.
The main intention of the MoU is to encourage co-operation between the two banking groups and to benefit from each other’s expertise and risk appetite. SMBC has a particularly strong presence and risk appetite in Eastern Europe, the whole of the CIS (including Russia, Kazakhstan, Ukraine and Belarus), and the whole of Asia. They have clientele in this region with exports into the Middle East and North Africa. However, given their limited experience and risk appetite for ME & NA risks, they will now be introducing this business to ABCIB.
Similarly, given that ABCIB has existing clients with strong trade flows into the CIS and Asia, but with limited ability to accommodate this business, we will be introducing some of such business to SMBC.
The MoU is not a legally binding agreement; however it is clear that trust is key to making this a success. It has been clearly agreed that neither party should at any time disclose its involvement in a transaction without the other party’s prior consent.
At this stage the MoU has been signed between each bank’s Global Trade Finance Departments, but if successful by all means it could be expanded into other product areas as well.
ABCIB, London will act as a central co-ordination point in respect of this initiative and would therefore request that any enquiry is communicated to either Charlotte Wiltshire or Simon de Monte.
In due course we will be circulating more detailed information listing SMBC’s risk appetite per country.