When a Spanish bank, issuing a CDI on behalf of an importing client, is clear about the solvency of its client, it may choose to offer to confirm “motu proprio” the CDI to the foreign exporter, even if it has not requested such confirmation.

This means that the bank is expanding its business to foreign countries and in most cases is perceived by the exporter as a competitive way to reduce its financial costs, since the interest rates of the Euro are today well below those of other currencies such as the yuan, the Australian dollar, the Brazilian real, the Turkish or Egyptian lira, and others, which range between 4 and 14% per annum (

For this purpose, the bank waits for the exporter to comply with the presentation of “clean” documents before proceeding with the non-recourse purchase offer and advance of funds, applying an interest rate ranging from 2 to 3% per annum (in some cases it may even be higher).

In view of the above, it is important to note that two conditions must be met: firstly, that the exporter complies with the presentation of documents without discrepancies (or that these have been accepted by the importer) and, secondly, that the CD is payable at term (90 days or more), in order for the advance of funds to make sense.

This formula is currently proving very successful with Asian and South American exporters, as it offers them the possibility of financing at a much lower cost than in their respective markets. This allows them to finance Spanish importers via longer payment deferrals.

Logically, this formula does not have the sympathy of local banks, which are losing financial business. This has forced leading Spanish banks to open representative offices or subsidiaries in the export countries in order to establish direct contact with exporters.

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