TXF Africa 2020
TXF Africa 2020 will focus on recent and forthcoming developments across regional export, project & commodity finance and explore new opportunities for each market.
TXF’s commodity finance report for H1 shows that overall commodity financing is down 30% on the same period last year while structured commodity financing has increased in 2016. Regulation, commodity prices and banking requirements have led to a difficult market on both sides of the financing world.
Although experiencing problematic market conditions, commodity trader Ocean Partners successfully closed a refinanced revolving credit facility in July, attracting participation from ten banks.
Lenders have always been keen to protect their returns but a recent trend towards borrowing base facilities demonstrates a clear preference for stringent security and asset based financing.
Despite sanctions still impacting Russia, the state-owned oil giant Gazprom’s UK-based subsidiary has quelled lender concerns to seal a new commodity financing agreement.
The Middle East is the largest export finance borrower market in the first half of the year, with a 35.3% share of the global market; the export finance community cites power, oil and gas, and real estate as the driving factors behind the growth.
Awareness about digitisation of trade finance documents still has a way to go in order for mass adoption to be achieved, as the paperless trade technologies battle against legacy systems. TXF discusses with essDocs the obstacles and ambitions of the growing digital trade finance documentation sector, and how SWIFT’s Bank Payment Obligation might be regaining credence.
Olam’s acquisition of Archer Daniels Midland (ADM)’s cocoa business provides the perfect opportunity to investigate the trader’s track record for sustainable cocoa and palm oil, its particular supply chain management technique, and the way the industry is moving towards ever greater monitoring of sustainable practices.
Trade credit insurance is reeling from the shocks affecting the global economy, recent reports from leading insurers show. World corporate risk has reached a peak, says a Coface report, and Euler Hermes reported increased claims from American companies.
In the latest edition of law firm Sullivan & Worcester's Trade Finance Breakfast Seminars, partners Geoffrey Wynne, Mark Norris, Marian Boyle and Sam Fowler-Holmes provide a legal update on a gamut of pressing regulatory issues including the UK's Modern Slavery Act, Article 55 and Bail-In, and international sanctions regimes.
Castleton Commodities International has closed a $3.3 billion trade loan refinancing its huge 2015 facility, which marked its expansion into global oil trading. The energy and metals trading company secured a lower margin on the loan and included new Asian lenders, consolidating its position as a super trader.
Stolt-Nielsen Limited, a Bermuda based provider of integrated transportation solutions for chemicals, and bulk liquids, has secured a $325 million loan with three relationship banks to acquire the chemical tanker operations and assets of Norway’s Jo Tankers.
Ollie Gordon catches up with VTB Bank’s head of global commodities and the managing director of its Trade and Export Finance division to find out how the bank is supporting its exporting clients in a post-sanctions environment.
In a wide-ranging interview, Riccardo Greco, chief financial officer of commodity trader BB Energy, talks to TXF’s Ollie Gordon about commodity prices, target markets, the traders’ varying business models, market consolidation, and the present availability of commodity finance.