TXF China 2019
TXF China brings an exclusive group of senior structured finance professionals together in Shanghai for a day of collaborative discussion of regional opportunities and productive network building.
Kenya Pipeline Company (KPC) has mandated banks to arrange a $350 million loan to fund the construction of a new fuel pipeline from Mombasa to Nairobi.
Swiss-headquartered trading company Mercuria Energy has signed an agreement with the Mexican state-owned oil company Petroleos Mexicanos (Pemex) to establish a joint venture which will import US natural gas into Mexico.
Swiss-headquartered commodity trading company Gunvor has closed a new $290 million uncommitted off balance sheet instrument (OBSI) revolving credit facility (RCF) to further support its European trading operations.
Calgary-based Osum Oil Sands Corporation (Osum) has closed its $210 million senior secured term loan facility, to partly fund the purchase of oil sands assets in Alberta, Canada.
Rusal has today confirmed that it has obtained 100% credit approvals from all its lenders for the proposed amendments to the $4.75 billion and $400 million pre-export finance (PXF) facilities.
Russian potash producer, Uralkali, has secured a new $250 million credit line from local bank Promsvyazbank, with an exceptional 10-year tenor.
Ariana Resources, the Anglo-Turkish gold exploration and development company, has signed a financing agreement to bring its Kiziltepe gold-silver mine into production – also known as the Red Rabbit Gold Project. The financing is the company’s first mine development in Turkey.
Mercuria Energy Trading Middle East DMCC, a subsidiary of Mercuria Energy Group, has secured a $200 million borrowing base facility through a group of banks.
The IFC has signed a loan of $18 million to Terra and African Milling Company Congo, to help the company expand its maize farm and mill in Katanga, Democratic Republic of Congo (DRC). The financing is the first agribusiness loan by the IFC into the DRC.
Commodity trader Trafigura Beheer has launched a $1.3 billion equivalent revolving credit and term loan facilities. The facilities are Asia-focused.
In a transaction arranged and led by Natixis, the bank has teamed with IFC and Standard Bank to put in place a $500 million trade finance facility, to finance Ethiopia’s import of refined petroleum products.
“One of the highlights of a successful conference is often how many people are left at the end. And this room is full!” declares Michael Hailu, director, Technical Centre for Agricultural and Rural Cooperation ACP-EU (CTA), at the closing ceremony of the highly successful Fin4Ag Conference in Nairobi, Kenya, jointly hosted by CTA and the African Rural and Agricultural Credit Association (AFRACA).
African agriculture stands at a crossroads and it alone is responsible for taking the right path. The sector has the potential to become a world beater within two decades, but only with a shift in mindset, the right technology and better corporate governance, delegates heard at a closing session for the Fin4Ag conference in Nairobi.
The number of Agricultural Investment Funds (AIFs) has increased significantly over the past decade, alongside an increase in the world’s population and food demand. Africa has been the chief beneficiary of this trajectory with 40% of AIFs established having an African geographic focus.
US and EU make new announcements on the Russia-Ukraine crisis with further impact on trade
Crowdfunding has the potential to turn smallholder farmers into the bank customers of tomorrow, helping them grow to the stage at which they are able to tap traditional finance, delegates to the Fin4Ag conference in Nairobi heard Thursday (July 17).
Mobile finance has undergone strong growth in recent years, with more than 220 operational platforms worldwide. While the majority of these have so far been confined to urban areas, providers are fast realising the need to break into rural regions to expand market share and achieve nationwide presence.
A new study into warehouse receipts and collateral management was unveiled this week at the Fin4Ag conference in Nairobi. The 200-page report dissects the experiences of nine countries examining lessons learned and highlighting potential ways forward in one of the most exciting fields of agricultural finance.
IFC is lending $36.5 million to agribusiness company BIDCO to support expansion of the company’s consumer goods operations into new market categories and create more opportunities for small farmers to enhance productivity and earn better incomes.
When considering challenges faced by farmers in the Caribbean – of which there are many – it is important to appreciate first the breadth of the region, says Niko Kluyver, general manager at FactorPlus.
With the vast ocean of financing required in African agriculture, banks alone – at least in the current climate – are insufficient. The same was true of Brazil and the agricultural sector in the early nineties, paving the way for the introduction of the capital markets into the commodities sphere there.
Commodity trader Trafigura, has today launched India’s first online refined metal retail platform – known as Lykos.
Equity Group Foundation is targeting Kenya’s under-served mid-sized farmers with a new training programme that seeks to provide them with key business skills. The programme aims to unlock unused agricultural land to improve not only farmers’ livelihoods but the country’s food security, the Fin4Ag conference heard Tuesday (July 15).
Developing internal trade corridors for agriculture in Africa and removing obstacles to formal trade will help farmers benefit from rapidly rising food demand in African cities, the Fin4Ag conference in Nairobi heard Tuesday (July 15). Tools like warehouse finance can support that process.
Key innovations and technologies are helping to drive change across Africa’s agricultural value chains, from mobile payment systems to centralised information registries.
“Africa requires $21 billion over the next 10 years to fill the finance gap in agricultural financing,” remarks Jean-Louis Ekra, president of African Export-Import Bank (Afreximbank) during the ‘Best practices in agri-value chain finance’ session at the Fin4Ag Conference in Nairobi today.
At the 2nd African Continental Briefing at the Fin4Ag conference in Nairobi, participants discussed how to strengthen value chains, build trust and help the public sector empower private players to finance farmers.
Haiti has found itself at the forefront of agricultural microfinance with an initiative that is shaking up misconceptions about the bankability of smallholder famers and will soon also be launched in Latin America (LatAm) and Africa.
Despite having nearly 20% of the world’s cultivated land, Africa’s share of the global agricultural market measured by insurance premiums paid is smaller than 1%, according to Jean-Christophe Debar, director of the Foundation for World Agriculture and Rurality (FARM). Latin America is better “but still under-developed”.
In a landmark development for agri-trade in Eastern Africa, the commodity-focused East Africa Exchange (EAX) has been officially launched. The regional commodity exchange has been created to increase access in the region’s commodity markets.
The love affair between banks and traders is sometimes resented by producers, who struggle to access bank finance directly. But traders are the arteries and veins of agricultural finance, helping money flow right across the value chain, adding value with processing plants, and supporting smallholders with technical assistance.
One of the biggest challenges small farmers face when they try to access finance is that they are an unknown risk. More farmers in African, Caribbean and Pacific countries have a mobile phone than a bank account, and even when they have tapped credit, it tends to be in a non-traditional form that passes through the net of mainstream credit data collection.
Development finance institutions (DFIs) have of course always led the charge in sweetening deals in emerging markets – using their own liquidity, quasi-sovereign rating or willingness to lend for longer tenors as a way to attract banks to the table. But now the DFIs are experimenting with new strategies and structures to get funding to the small farmers and traders who need it most.
African banks are taking the lead in financing the continent’s farmers, traders and soft commodities. With more local money in the system, they are also reaching further down the value chain, though still find financing farmers directly a challenge. At the same time, international banks are snapping up stakes in local players, hoping to piggy-back on their distribution network and on-the-ground expertise.