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Contract Awards - Recruitment of Individual Consultants for RPA projects completion report - PIFD
The Trade Finance Risk Participation Agreement (RPA) is an unfunded guarantee product through which AfDB (the Bank) shares the credit risk (usually up to 50%) of a portfolio of eligible trade transactions with partner Confirming Banks (CBs), mainly global banks, African regional banks as well as regional development finance institutions active in trade finance. The Bank provides partial risk mitigation to these CBs for the risk they take on the trade finance activities of banks in Africa (issuing banks), especially letters of credit. The wholesale approach of RPA means that the Bank relies on these international banks to perform credit/risk analysis on the issuing banks, as well as originate, process and monitor the guaranteed transactions. AfDB classifies the partnership with each CB as a project, typically with a tenor of 3.5 years.