SMBC group's Global Trade Finance Department (GTFD) have received nine Deal of the Year awards from three leading trade finance publications – Trade Finance Magazine, Global Trade Review (GTR), and Trade and Forfaiting Review (TFR) – for transactions at Mandated Lead Arranger (MLA) level closed in FY2008. Although the market saw a dramatic shift following the collapse of Lehman Brothers in September and events which ensued leading to a challenging second half of the year, GTFD succeeded in closing a record number of notable deals – an increase from 2007 when six awards were received.

Winning deals include six major pre-export finance deals, a trade-related loan in Nigeria, a structured medium-term receivables-backed financing and US$250m commodity pre-export financing closed by GTFD Americas (located in SMBC NY Branch). In addition to the winning deals at MLA level, GTFD Greater China (located in SMBC China Ltd)participated at arranger level in winning deal US$250m 3 year pre-export finance facility to Inner Mongolia HKHJ Aluminium Electricity (SMBC net take US$14m). This transaction was viewed as one of the major deals completed in China in 2008.

All winning deals were signed before September with the exception of US$1.5m pre-export finance with Eurochem, which was signed at the end of September following the collapse of Lehman Brothers and was funded just as everyone else was reigning in spending. Despite its timing, syndication closed over-subscribed. This was the first pre-export finance deal for the client and first for SMBC in this industry.

Including Eurochem, four Russian pre-export deals were awarded: US$1.5bn facility with Novolipetsk; US$1.6bn facility with Metalloinvest; and US$3.2bn with Rosneft, which was of particular note due to the size of the facility. In addition to the four Russian Pre-export finance deals was US$2.1bn pre-export financing facility with Kazakhmys in Kazakhstan, which was the first pre-export deal for this borrower and US$1bn facility with Ghana Cocoa Board.

The US$70m trade-related loan with Diamond Bank Nigeria closed by Forfaiting team and Africa Desk was a ground-breaking deal demonstrating SMBCE’s origination and distribution capabilities in Africa. SMBCE was awarded an exclusive mandate by Diamond Bank to raise US$45m, but succeeded in raising US$70m on a net take of US$5m, which itself was sold shortly after drawdown. The transaction earned income of US$716k in FY2008.

Two awards went to transactions closed by GTFD Americas team: US$250m pre-export finance with Multigrain; and US$600m accounts receivable purchase with Dowell Schlumberger. As MLA for the Multigrain deal, SMBC succeeded in raising US$40m with a net take of US$20m.

GTFD's continued success in these awards demonstrates SMBC group's capabilities as a strong player in trade finance. Although uncertain times following the events of the year will bring new challenges in the coming financial year, it will also present new opportunities and areas for GTFD to continue to grow its business.