Indian issuers accept US reps and warranties

Author: Ashley Lee | Published: 11 Feb 2015

Indian issuers no longer dispute that representations and warranties for US sanctions compliance are needed. Instead they are now preparing to negotiate the nuances of the feature with their clients – and with other banks.

Reps and warranties have become an increasingly important deal feature globally, as US regulators enforce sanctions non-compliance with ever-increasing fines. Issuers in India – a jurisdiction that still does business with Iran – were previously reluctant to offer them.

But that has changed. Instead both banks and issuers must be prepared to spend a lot of time negotiating the nuances of reps and warranties in relation to US sanctions.