TXF Global 2022: Export, Agency & Project Finance
We’re taking the global export roadshow to Lisbon! Join us on the 7th & 8th June 2022 for another unmissable hybrid event. Deal makers from across the globe are attending in force. Don't miss out...
Demand for lithium is ballooning along with technological advances in the battery market. However, limited market expertise among newcomers, the inability to hedge lithium pricing or predict future demand is making already tricky extraction even more problematic and expensive to finance.
For sale: Investible asset. Self-liquidating with low default and loss rate. Contributor to real economy businesses. Short term maturities available. It’s a compelling sales pitch that, for the first time, is beginning to push trade finance from niche to mainstream asset class for funds and investors.
Ukrainian corporates have had a tough time of it since 2014 when Crimea was annexed by Russia. However, just three years later the better names in Ukraine are returning to the debt markets and finding appetite from banks willing to take on the country’s risk premium.
Amid an uncertain political and economic landscape in Ukraine syndicated debt offerings have been few and far between. Ferrexpo’s decision to tap the PXF market indicates that banks are still able to finance good assets in otherwise tricky jurisdictions.
US Ex-Im has been without authority to approve transactions above $10 million for over 18 months, provoking huge changes for some of Ex-Im’s largest clients. However, exporters are beginning to look elsewhere – to private insurers and some other ECAs – to fill the financial support vacuum.
Some economic sanctions were lifted 18 months ago and Iran is open and keen for business. However, the commercial bank sector is far from tapping into the immense opportunities that could spark a huge growth for trade and projects. Western banking hesitance and Chinese influence has become the norm on Iranian soil, but can non-US banks operate assured that the US will not react?
The end of the US’s crude oil export ban in 2015 heralded greater appreciation of shale and its potential opportunities. Commodity traders are now increasingly active in the upstream space as they bid to take advantage of a growing market going forward.
Cost-cutting measures at Angola’s state oil company have started to pay off and foreign oil companies are re-engaging with Sonangol at improved terms. But broader restructuring plans are frustrated by government inertia ahead of the elections - and there is no guarantee such plans will be implemented after the looming political succession.
The borrowing prospects for junior miners are looking better than they have done for the past three years. But with international banks nursing Basel-battered balance sheets, the lending market for junior mining project risk has changed permanently and the future is multi-sourcing.
In anticipation of changes to the EU’s sugar production quota in October, European sugar producers and refiners are gearing up for a more competitive market place. Commodity traders are set to benefit - if they can access the necessary financing.
Singapore-based commodity trader Olam’s debut European revolver is the latest signal that the Asian agri-trader label is outdated. Dramatic growth in recent years means many of these traders are on the verge of becoming global players - approaching the size and reach of the ABCDs - and are growing their funding bases accordingly.
Shandong Qingyuan has closed its second benchmark deal in as many years - a $650 million pre-payment facility. The deal is the largest ever structured commodity financing in the Chinese market and the first offshore debt raised by an independent Chinese refiner.
The second restructuring of Glencore’s pre-pay deal with SHT, combined with more deal volume and the increasingly risky markets traders are financing, is flagging up the growing risk banks take as indirect lenders to prepayment loans by the major commodity traders.