The high-profile collapse of Singaporean-based oil trader Hin Leong and other certain suspect cases has highlighted malpractices within the sector and concern for future lendings. Jonathan Bell assesses what this all means for the commodity finance community in the city state.

While some European commodity-linked corporates are tapping into expensive, short-term debt to boost their liquidity amid the Covid-19 pandemic, many Russian traders and producers are confidently going ahead with general syndicated loans that were in the pipeline even before the crisis.

During a volatile time for global trade and the commodities market amid the coronavirus pandemic, TXF spoke to Jean Woo, partner at Ashurst in Singapore, to discuss how the law firm is staying abreast of the legal requirements facing its corporate clients as many of them look to restructure their debt.

Nornickel has sealed a $4.15 billion refinancing at time when Russian corporate borrowers and international lenders have found their cost of debt aspirations harmonising, according to sources, with the producer’s upsized and tightened deal a testament to this market sentiment.

Ireland-based Kenmare Resources returned to the debt markets in December to refinance the remaining debt backing its Moma titanium mine in Mozambique. But this time round, the deal has a new lender line-up, vanilla structure, looser covenants and cheaper pricing, which all reflect the strength of the mine’s cash flows and its expansion capacity.