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Structured Trade & Commodity Finance
Designed to meet the need for efficient deployment of capital to mirror trade cycles focusing on producers to the re-payment from the end buyer in the trading of commodities
Product Information
The need for efficient deployment of capital to mirror trade cycles focusing on producers to the re-payment from the end buyer using various ring-fencing mechanisms and structures to manage cash flows, mitigate risk and reduce exposure throughout the transaction cycle continue to underscore the need for specific expertise in the trading of commoditiesÂ
Our highly trained and specialized Structured Commodity Trade team will help you extend your trading frontier with an alternative but tailored made trade finance solutions designed especially for businesses that produce, trade and purchase commodities which include Energy, Mining & Metals (gold, zinc, copper, cobalt etc) and Soft Commodities (agriculture crops – maize, cocoa). The scale of finance is also extended to contemporary industries like Manufacturing, Telecoms etc thereby creating and avenue for a One-Stop-Shop finance / Solution Centre.Â
Our solutions are customized to meet your specific needs. In addition to traditional commodity working capital financing, our structured trade solutions can include
- Value Chain Financing which spans; Pre-export finance (PXF), Pre-Shipment Finance, Receivable Finance, Prepayment Finance, Tolling Finance etc: This provides commodity trading entities, the means of raising money by using inventory and various security instruments as collateral, as against the traditional call for bricks and mortals.
- Borrowing base facilities: working capital credit facilities that are secured by current assets
- Revolving credit facilities (RCF): A type of borrowing base facility which the borrower (usually a big commodity trading house) can draw from and pay back as needed, benefiting from extra flexibility
- Warehouse financing: A loan made to a producer or processor with goods or commodities held in a warehouse as collateral (security). The goods can be held in a public warehouse approved by the lender or in the borrower’s warehouse, but managed by a third party (a collateral manager)
- Export Finance for Inland Delivery in Store (Export Finance Facility with Delivery at local store of the offshore offtaker. This is to reduce cumbersomeness associated with logistics and delay in payment.
- Our STCF products allows our customer access to funding outside of normal bank lines.
- Offers the possibility of short and medium-term funding at a lower cost of funding compared to other available sources of debt.Â
- Flexible security terms as our customers are able to use unencumbered export sales as security for facilities
- Provides needed liquidity to enable our clients source more materials thereby increasing production. Â
- Helps bridge the gap between the need for prepayment and the need for Funds
- Loans are on a short-term basis reducing overall financing costÂ