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.
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.
Gazprom Export has appointed Elena Burmistrova as its new director general. Burmistrova started her career at Glencore International (Switzerland) in 1992, then worked for various international companies.Between 2003 and 2006 she was deputy director of Spetsgaz, Gazprom Export.
Now in its 21st year, the annual pre-export financing of Ghana’s cocoa harvest is an example of how African agriculture really can attract big international banks – and increasingly cheaply – given the right mix of government involvement, industry organisation and deal structure.
Agriculture forms the backbone of many economies in the Pacific Islands. Despite their geographic remoteness, a handful of islands are quietly building burgeoning export industries in commodities such as cocoa, coffee and sugar and, in the case of Papua New Guinea (PNG), a value-added tuna canning industry.
Russian aluminium producer Rusal reports that it has made significant progress in reaching full agreement with its creditor group over the terms of refinancing of its pre-export finance (PXF) debt, although in order to finalise an agreement the company may now need to seek legal authority through the courts.
Sustainable horticultural production in Kenya has received a boost with new funding from development finance institution Proparco.
IFC is providing debt financing of up to $250 million to Ukrainian poultry producer Myronivsky Hliboproduct (MHP). The loan will be used to help the company expand its production and supply chain. to expand leading which employs over 30,000 people, and to develop Ukraine’s agribusiness sector, a key driver for the economy.
Chevron Global Energy, a subsidiary of oil major Chevron, has sold its interest in a producing oil concession in southern Chad and the related export pipeline interests to the Chad government for approximately $1.3 billion. In a unique deal, the sale to the has been organised through trading company Glencore.
Tullow Oil has refinanced its NOK2 billion ($330 million) Norwegian exploration revolving credit facility (RCF), and at the same time it has successfully increased the size of the facility to NOK3 billion ($500 million). The maturity date has also been extended, providing availability to the end of 2017 – thus giving a tenor of 3.5 years.
The US Overseas Private Investment Corporation (OPIC) and the Multilateral Investment Guarantee Agency (MIGA) have combined to provide a $350 million political risk facility to support agribusiness investments in countries throughout sub-Saharan Africa.
TXF talks to Jean-Francois Lambert, Managing Director, Global Head of Commodity and Structure Finance, HSBC, at the inaugural TXF Natural Resources and Commodities Finance Conference in Amsterdam.
TXF talks to Kris van Broekhoven, Global Head of Commodity Trade Finance at Citi, at the inaugural TXF Natural Resources and Commodities Finance Conference in Amsterdam.
Energy trading company Vitol has closed its $2.05 billion loan to fund the acquisition of the downstream businesses of Shell Australia (excluding aviation).
Pan-African Ecobank has today signed a memorandum with eleni LLC, the leading proponent and developer of commodity exchanges in Africa, with a view to establishing a cooperative framework to promote and accelerate the development of Africa’s agriculture and associated financing.
A new banking group with four German banks on board has won the mandate for this year’s annual pre-export financing (PXF) for the Ghana Cocoa Board (Cocobod).
Belgian-incorporated metals and mining company Nyrstar has signed a binding agreement for the final funding and support package for the redevelopment of the Port Pirie zinc smelter into an advanced metals recovery and refining facility with the South Australian government and Australia’s export credit agency EFIC.
National Bank of Fujairah (NBF) has launched its structured trade commodity financing (STCF) programme, as a means to be a one-stop solution for the cross-border commodity trading requirements of companies across the UAE.