C OLLATERAL C ONTROL S ERVICES FOR B ANKS , T RADERS & S UPPLIERS EUROPE | MENA | EURASIA | WEST AFRICA | EAST AFRICA | SOUTHERN AFRICA | SOUTH ASIA | FAR EAST | LATAM www.ace-group.net
C OLLATERAL C ONTROL S ERVICES CONTENT ACE Global……………………………………………………………3 -12 Introduction and Services Transactional Finance Risk & Mitigants……………………………13 -20 Business Process and Overview……………………………………21 -24 E3C- Enhanced Credit Commodity Control………………………..25 -29 Legal Appraisal and Definitions……………………………………..30 -32 Group Contact Details………………………………………………..33 -34 2
C OLLATERAL C ONTROL S ERVICES International trade, distribution of goods and trade finance activities often require control over the underlying collateral based on the purpose of the loan, the shipping documentation, jurisdictional, legal and insurance requirements, Inventory and the receivables located in the country of import or export. ACE GLOBAL DEPOSITORY (ACE GLOBAL) is a leading Collateral Control organisation and provides sophisticated collateral control services using adequate credit support tools relevant in respect of field warehousing, collateral management, secured distribution, certified inventory control services and certified accounts receivable services, as well as field audits, inspection, monitoring, all to an international clientele. Our team comprises of operational experts , bankers, credit support personnel, legal advisors, financial officers and chartered accountants supported by the physical presence and field expertise of a worldwide network of trained inspectors, providing unique service in the field of international collateral risk management. Through its world-class systems and staff, ACE GLOBAL is able to identify and secure the weak links in value chains – or design whole and entirely secured value chains for the account of its partners in any location. 3
C OLLATERAL C ONTROL S ERVICES ACE GLOBAL – A Snapshot • ACE GLOBAL’s near term target is to establish its FACTS presence in Eastern Europe and Central Asia. • Present in 46 countries worldwide • Currently own laboratories in 5 countries and is investing • Have provided Collateral Control and asset Management in new laboratories. to 172 financial institutions • International Certification : Manual ISO 17020: 2011 duly • Total assets in custody in excess of US$ 9 billion prepared and distributed. Internal Audit underway • More than 4,800 employees pending certification. Grain and Feed Trade Association (GAFTA) & The Federation of Oils, Seeds and Fats HISTORY Association (FOSFA) members. • ACE GLOBAL, an international Collateral Control Company created in 1996 to assist : Banks, Financial Institutions to mitigate their transactional risks inherent in local, regional and international trade. Emergent Countries to make safe the revenues from taxes and special taxation • ACE GLOBAL commenced its operations in Uganda in 1996. By end of the year, ACE GLOBAL was present in 5 countries in Southern and East Africa. • From 1999 to 2008, ACE GLOBAL extended its activities in 17 countries. • Since 2009, ACE GLOBAL has expanded its network for another 26 countries. 4
C OLLATERAL C ONTROL S ERVICES ACE GLOBAL - Operations Operation through ACE subsidiaries, Operations through Agents affiliates and associates 1. Angola 24. Malawi 1. Australia 14. Mexico 2. Argentina 25. Mali 2. Belgium 15. Mauritius 3. Benin 26. Mauritania 3. Bulgaria 16. Madagascar 4. Brazil 27. Mozambique 4. Bangladesh 17. Portugal 5. Burkina Faso 28. Morocco 5. Canada 18. Romania 6. Burundi 29. Niger 6. Estonia 19. Saudi Arabia 7. Cameroun 30. Nigeria 7. France 20. Spain 8. Central African Republic 31. Pakistan 8. Germany 21. Syria 9. Cote d’Ivoire 32. Rwanda 9. Greece 22. The Netherlands 10. Democratic Republic 33. Senegal 10. Italy/Chypre 23. Tunisia Congo 34. Sierra Leone 11. Jordan 24. Russia 11. Dubai (UAE) 35. Singapore 12. Libya 25. Ukraine 12. Djibouti 36. South Africa 13. Lebanon 26. USA 13. El Salvador 37. Sudan 27. Venezuela 14. Ethiopia 38. Switzerland 15. Egypt 39. Tanzania 16. Gambia 40. Thailand 17. Ghana 41. Togo 18. Guinea-Bissau 42. Turkey 19. Guinea Conakry 43. Uganda 20. India 44. Vietnam 21. Indonesia 45. Zambia 22. Kenya 46. Zimbabwe 23. Liberia Company incorporation under process Bahrain, Saudi Arabia, Romania, Panama, Kingdom of Lesotho, Chad, 5 El-Salvador, Tajikistan
C OLLATERAL C ONTROL S ERVICES ACE GLOBAL – Professional Liability Insurance Cover • To indemnify the insured against legal liability, costs or expenses arising out of insured’s operation • Area covered : Worldwide • Limit of liability : $ 100 million (per event / per occurrence) • No claims made on PI since inception (17 years) 6
C OLLATERAL C ONTROL S ERVICES 7
C OLLATERAL C ONTROL S ERVICES Financing and Structuring Opportunities – ACE GLOBAL Services 8
C OLLATERAL C ONTROL S ERVICES ACE GLOBAL - Collateral Control Services ACE GLOBAL provides a “One - Stop Shop” across the commodity value chain. ACCS Exporters/ Local/Region Transport/Lo Transport/Lo Transformers Traders Countries al Producers gistics gistics Importers Crop Finance • Distribution • Refiners • Tanks/Silos Tax and Duty • Tanks/Silos • End Users collection • Shipping • Mills • Shipping • Rail • Crushers • Rail • Pipelines • Factories • Pipelines • Breweries Existing relationship 9
C OLLATERAL C ONTROL S ERVICES ACE GLOBAL – Solutions Financial Commercial Operational Risk General Services Structuring Engineering Management services services services • Structured Trade • Contract Farming • Field Warehousing • Consultancy • Collateral Management • Advisory and Commodity Services • Trade Flow • Secured Distribution • Legal Financing • KYCC services • Certified Inventory Control • Training Facilitation • Commodity • Commodity Pricing • Certified Accounts Receivable • Supervising Aid profile Services • Monitoring management • Field Audit and Inspection 10
C OLLATERAL C ONTROL S ERVICES Services ACE GLOBAL conducts its own legal due diligence in respect of bespoke services offered viz. – Field Warehousing : is essentially a method whereby a borrower’s trading assets are used as security at the borrower’s own premises for a loan or financing. It is a security instrument which enables the borrower, to deliver to the Bank legally valid documents of title and to grant a possessory pledge over goods stored in the borrower's own plant, mill, refinery or warehouse via the legal principle of Bailment. In order for a field warehouse and the lien created thereby to be recognized as valid, the possession of the Collateral Controller must be “exclusive, notorious and continuous. ” All the ACE GLOBAL operating procedures have been devised to comply with this standard. – Collateral Management : Under Collateral Management operations, the storage premises are owned and operated by an independent third party without the influence of the borrower. Field Warehousing and Collateral management agreements hence differ inter alia, on the basis of the ownership, control and release mechanism within storage facilities. Under collateral management it is therefore essential to devise a methodology for maintaining control, custody and possession and for effecting release, all of which binds the third party to the Collateral Controller as per the mechanism agreed by the Bank. In such Collateral Management Operations, it is this third party which is the original goods father in respect of such goods i.e. on behalf of the owner of the goods which first deposits the goods with the third party for storage. – Secured Distribution Services : This a specialized type of Field Warehousing developed to service the needs of suppliers of commodities who wish to retain ownership of the inventory they supply, or to have a possessory lien on the goods till such time that payments are received in full against such inventory, and to regulate the delivery of the inventory to the Buyer. This service has been developed by ACE GLOBAL to service both the Suppliers’ needs as well as the Buyers’ needs and the Agreement is adjusted accordingly based on the 11 operational requirements.
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