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...
For a producer, access to financing can result in the firm’s life or death. Financing comes in different shapes and forms depending on the company’s risk profile. Here, Gianluca De Stefano, energy origination at Noble Americas, examines the development and use of prepayment financing within commodity finance.
Come on in, put the kettle on and enjoy TXF’s new podcast where our panel discuss the ‘biggest shift, biggest change’ in trade over the past year, and give their predictions for 2017 to help us feel our way through the mist of uncertainty.
The world’s largest traders including Glencore, Trafigura and Gunvor are set to launch their refinancings for revolving credit facilities in the coming weeks having secured competitive pricing on their 2016 iterations. Will 2017 remain a competitive year of debt pricing for commodity traders?
A number of state-owned Omani borrowers are already testing appetite for loans in 2017. But borrowers may have to stagger deal flow to avoid having to compete for lenders and causing an uptick in margins.
Despite the conflict in eastern Ukraine and the crash in iron and steel prices, Metinvest has managed to restructure its debt and even lowered pricing on some of its outstanding pre-export loans.
Commodities trader Trafigura has launched the refinancing of part of its flagship 2015 European RCF with a group of international banks. The pricing on offer is said to be around the same as the previous loan, despite a drop in Trafigura’s 2016 profits.
A key project for Ghana and a direct lending first for UKEF – Vitol’s OCTP is rumoured to be tightly priced and partially financed under a fixed rate CIRR.
Is the fund-backed debt package for Continental’s Buriticá gold mine project symptomatic of a growing alternative to traditional project lenders in the mid-level mining market?
Sofitex, one of Burkina Faso’s largest cotton exporters, is expected to finalise €90 million ($95.4 million) in financing from international banks for the 2016/2017 season. This is in addition to €122 million ($129 million) raised from domestic banks following a decision to move away from genetically modified crops.
Belgium-based oil tanker company Euronav has secured competitive pricing on its latest revolving credit. The deal was oversubscribed and pulled commitments from 10 banks.
Following the departure of its grains chief executive, Matt Jansen, Cofco Agri appears to have altered its plans to become a global agricultural trader. The shift could see a greater focus on the Chinese market as the state-owned company looks to rein in control.
The Tangguh LNG 3 financing was the major deal in the Asian oil and gas market last year. But more significantly, it marked the return of a global sponsor to expansion mode.
Smithfield Foods, one of the US’s largest pork producers, is purchasing grains and grain elevators directly from farmers and steadily removing traders from parts of their supply chain. Agri traders have to demonstrate value to producers as companies look to minimise expenditure.
Commodity trader Vitol has secured the first major contract between a trader and Iran since the easing of EU sanctions in early 2016. The agreement continues the trading house’s recent record of using pre-payments in politically challenging markets to guarantee long-term access to large volumes of oil.
Traditionally the world’s largest market for pre-export financing (PXF), Russia has seen an increase in the number of PXFs arranged for its companies in 2016. High levels of liquidity within Russian companies and banks has been a noted cause of this, particularly in the metals space.
As we approach the end of a year that has made the headlines for a variety of reasons, many surprising, shocking and unexpected events have also played out in the commodity financing space. From shifts in commodity prices, new players within the industry and changes in trade flows, this year has surpassed many expectations, with 2017 set to continue the trend.
The forecast for 2017 is uncertain but, according to Francisco Anzola of CC Solutions, the export finance market cannot let speculation influence its direction.
Agricultural trader Nidera has had a string of problems in recent years as it continues its integration into Cofco Agri. However, lenders are still confident that Cofco Agri will be fully integrated in the new year and are positive about its future.
Commodity trader Glencore has stolen a march on its rivals, securing an unexpected deal with state-owned Russian oil company Rosneft. The Switzerland-based trading house will gain crucial volumes of Russian oil rounding off a resurgent year for the previously ailing trader.
Following a tough 2015 which saw the share price of commodity trader Glencore drop dramatically, signs of improvement have been evident in 2016. The resumption of dividend payments and a reduction of net debt have reaffirmed a belief that the commodity house has finally bounced back.