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
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.