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Master Risk Participation Agreement (MRPA)

Risk participation framework agreement

The Master Risk Participation Agreement (MRPA) offered by ETC is a Risk Sharing Agreement (BAFT), based on English law. It allows leading banks (correspondent banks) to syndicate their risks in Trade Finance transactions, particularly in the context of transactions with African markets.

The type of risk participation offered by ETC Export Trading Cooperation is participation by signature authenticated by Swift interbank messaging. Indeed, ETC is rated A3- (risk category 2 “low” according to the EU classification) with the European Securities and Markets Authority (ESMA) by an External Credit Assessment Institution (ECAI), in accordance with to Regulation (EC) No. 1060/2009. This “Investment Grade” rating allows risk weighting for regulatory purposes.

Our observation

The shortage of correspondent banks and other financial institutions inclined to African risk is now proven. This state of affairs sometimes pushes African issuing banks and their importing clients to give up. The volume of transactions delayed or canceled due to this situation constitute a real obstacle to the development of African markets.

It is in this context that ETC – Export Trading & Cooperation proposes to potential Correspondent Banks the ratification of a Master Risk Participation Agreement (MRPA). It will be made with this agreement, possible to share the risk of default and reduce the risk of concentration on a portfolio of transactions, thanks to the implementation of hedging lines specific to each counterparty.

What is the Master Risk Participation Agreement (MRPA)?

The ETC Master Risk Participation Agreement (MRPA) is a risk sharing agreement signed between ETC and the Correspondent Bank to enable the latter to syndicate its risks in Trade Finance transactions with Issuing Banks based in Africa.

Who can benefit from the Master Risk Participation Agreement (MRPA)?

  • The Confirming Banks

When to apply for the Master Risk Participation Agreement (MRPA)?

  • You are regularly solicited by issuing Banks based in Africa in the context of Trade Finance transactions, including Letter of Credit Confirmation 
  • You wish to share the risk of default and reduce the risk of portfolio concentration towards with your Issuing Banks partners by requesting a participation.
  • You would like to benefit from hedging lines dedicated to portfolio counterparties.

The advantages of the Master Risk Participation Agreement (MRPA) for you.

  1. Optimize Tier 1 capital and reduce concentration risk by reducing exposures
  2. Comply with the requirements of BASEL III in terms of CET1 minimum capital and risk division.
  3. Enter new markets


The terms of the Master Risk Participation Agreement (MRPA)

Silent risk sub-participation


Transaction to be guaranteed

min. €1 Million, max. 30 Million €

Maximum rate guaranteed

Up to 80% of the transaction


on a case by case basis depending on transaction

Risks covered

Client insolvency risk

Generating facts

Lapse of term declared by the lender


Periodic Reporting

Some beneficiary banks

  • Euro zone and UK
The Master Risk Participation Agreement (MRPA) in a nutshell


Risk sharing default on a portfolio transaction


Risk of insolvency of the Client(s)


 Acceptance of offer from the Leading bank according to MRPA

SWIFT Interbank Message



Issuing financial institution

Guarantor / Confirmer

LEADING BANK : Confirming bank

PARTICIPANT : ETC – Export Trading & Cooperation


Confirming Financial Institution (FI)
(Leading Bank)



  • AGR = Annual Global Rate
  • AF = Application FEE (Indicative rate 0.5% flat)
  • IF = Issuing Fees (Indicative rate 0.25% flat)
  • TR = Tenor (year)
  • CF = Commitment fee (annual rate according to financial rating

Submit your need

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Master Risk Participation Agreement (MRPA)