NINE STEP PROCESS …
- BNS Subsidiary issues SWIFT message to E.O. Trade Finance with transaction details requesting financing.
- Regional Trade Finance contacts the Exporter and obtains a Canadian Benefits Report, which is faxed to E.O. Trade Finance.
- E.O. Trade Finance prepares and faxes an Offer Sheet to EDC - this includes L/C amount, expiry, repayment terms, interest rate.
- EDC accepts offer letter to "buy" 85% participation in underlying transaction.
- E.O. Trade Finance sends two offer letters to BNS subsidiary covering both EDC's (85%) and BNS' (15%) financing components.
- BNS Subsidiary confirms acceptance by SWIFT and issues Sight L/C in favour of beneficiary (Exporter) requesting respective regional Trade Service Unit (TSU), to add its "confirmation".
- The beneficiary (Exporter) ships the capital goods and presents L/C documents to OITS, for checking. If documents are fully compliant, the Exporter is paid as per terms of the L/C.
- When L/C is fully drawn or expires, E.O. Trade Finance issues a Settlement Sheet to EDC and issues a commitment letter (for the 15% BNS portion) to its Subsidiary.
- EDC settles with E.O. Trade Finance.
For additional information please contact your Regional Trade Finance Representative.
For additional information with respect to internal process or questions regarding EDC/BNS Participation/ Refinancing Agreement, please contact Your Regional Trade Finance Representative.
