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Trade Finance Bond (TFB)

Trade support for short-term financing needs.

The Trade Finance Bond (TFB) is an individual trade guarantee that supports companies in the trade of goods and services, thanks to the instrument of the SBLC (Stand-by Letter of Credit) according to the rules of the International Chamber of Commerce.

Our observation

In international trade, the risk of payment default is one of the major concerns. The countries of sub-Saharan Africa are particularly exposed to this risk, however, trade activity is becoming more and more democratized there. The volume of transactions carried out internationally is exploding.
When you are a bank, how can you protect yourself against the risk of non-payment by your customers for trade carried out on the other side of the world?

ETC – Export Trading & Cooperation, offers its trade guarantee (the TFB) to cover this risk of payment default.

What is the Trade Finance Bond (TFB)?

Trade Finance Bond abbreviated as “TFB” designates guarantee coverage on a short-term loan relating to a trade operation, in particular stock financing or trade.

Who can benefit from the Trade Finance Bond?

  • You are a goods and services trading company
  • You are a bank

When to apply for the Trade Finance Bond (TFB)?

  • You want to boost your business activities
  • You want to improve your bank’s solvency ratios for better leverage
  • You want to optimize your cash flow
  • You want to weight the credit risk and benefit from an additional solution to strengthen equity.

The advantages of the Trade Finance Bond (TFB) for you.

  1. Finance trade credits.
  2. Mitigating and weighting credit risk
  3. Increase your trade finance capabilities

The terms of the Trade Finance Bond

Silent risk sub-participation


Amount of guaranteed loans

min. €250,000 max. 30 Million €

Guaranteed quota

Up to 85%

Duration of eligible loans

Up to 18 months

Covered risks

Risk of non-payment

Generating events

Lapse of term declared by the lender


Periodic Reporting

Some beneficiary banks

  • BGFIBank Cameroon
  • BGFIBank Benin
  • BGFIBank Europe
  • BGFIBank DRC
  • NSIA Banque Benin
The Trade Finance Bond in a nutshell


Coverage of short-term loans (trade)


Default risk


Standby Letter of Credit (SBLC)

SWIFT Interbank Message



SME, Corporate, Commercial banks

Guarantor / Confirmer

ETC – Export Trading & Cooperation


Financial Institution (FI) and Development Finance Institution (DFI), Exporters via their Bank

Formula :APR = (AF/T) + (IF/T) + CF


APR = Annual Percentage Rate

AF = Application Fees (Indicative rate 1% flat)

IF = Issuing Fees (Indicative rate 0.5% flat)

T = Tenor (year)

CF = Commitment Fee (Annual rate according to Financial Rating*)

*  See table

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Trade Finance Bond (TFB)