Commodity Finance

Commodity finance comprises two key products. The first is commodity-linked loans in the agriculture, oil and gas and mining industries where the lender has the future production or reserves of the commodity as security. These types of deal can be reserves-based loans, pre-export facilities, prepayment facilities, or even streaming, royalty-based loans and factoring. The second are very large unsecured term loan and revolving credit facilities provided annually by commercial banks to the major commodity trading houses and producers – Glencore, Gunvor, Trafigura, Vitol, ADM, Bunge and Castleton for example. These loans, effectively working capital facilities, also enable the major traders to provide loans to commodity producers that lack liquidity, thus ensuring security of commodity supplies and additional profits from that lending due to the arbitrage between the cost of debt for the major traders and what they can on-lend at.

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Pan African board approves 10MW solar plant at Elikhulu
10 July 2020

Metalloinvest switches to online factoring
10 July 2020

IFC agrees working capital financing to Ukrainian agribusiness
10 July 2020

North American oil and gas companies continue to go bankrupt
10 July 2020

Glencore restructures $500m oil loan with Iraqi Kurdistan
10 July 2020

JERA books hefty one-off losses on 2019/20 LNG supplies
9 July 2020

$1bn EPC contract awarded for Egyptian hydrocracking complex

Yancoal refinances $1.275bn facility
9 July 2020

Mexico's Pemex, Talos Energy told to seek deal on shared oil find
9 July 2020

EBRD raises trade finance limit to €3bn as demand surges
9 July 2020

Cocobod's annual revolver faces uptick in margin
9 July 2020

Mexico's Pemex plans $22.4bn debt swap
9 July 2020

BP commits $70m to UK-India green growth fund
9 July 2020

Petrobras to open tender for Brazil's biggest ever platform
9 July 2020

Banyan Gold announces $4.3m financing
9 July 2020

Olam secures JPY25bn Samurai loan
9 July 2020

Mexican renewables: Can DFIs remedy investors’ woes?
Mexican renewables: Can DFIs remedy investors’ woes?
Max Thompson
8 July 2020

A stack of Mexican government policies in the energy space - supposedly implemented in response to the Covid-19 pandemic by Lopez Obrador's government - has forced project sponsors to take government agencies to court in order to bring renewable projects online. But can DFIs help provide further comfort to investors and banks looking to exit the sector?

Cornish Lithium raises funds for exploration
8 July 2020

Kaunis Iron seals iron ore export deal via CargoDocs
8 July 2020

Cargill unveils 10 new global renewable projects
8 July 2020

Keystone XL pipeline project dealt blow by US Supreme Court
8 July 2020

Rio2 chooses STRACON as lead contractor for Fenix Gold Project
8 July 2020

ScoZinc seeks project finance after Scotia mine PFS
8 July 2020

StanChart joins IBOS Association
8 July 2020

Rattler Midstream launches $500m notes offering
8 July 2020

Corrie MacColl signs $25m sustainability-linked loan
7 July 2020

Brazil's Tereos Group signs debut ESG-tied loan
7 July 2020

MC Mining restructures IDC loan
7 July 2020

Power Metal Resources raises £1m

Eni to book $4bn asset writedown after cutting price outlook
7 July 2020

Kibali's $500m will soon be cleared to leave Congo, says Barrick CEO
7 July 2020

US Jordan Cove LNG export project receives final approval
7 July 2020

CIMB alleges 'suspicious' Hontop Energy oil deals with BP
7 July 2020

IFC funds Addax Energy to secure Mauritania’s oil imports
7 July 2020

Viaro to acquire RockRose Energy for $308m
7 July 2020

Expert briefing: Insolvency reforms and distressed debt in commodity trade finance
Expert briefing: Insolvency reforms and distressed debt in commodity trade finance
Catherine Lang-Anderson
6 July 2020

The UK passed the Corporate Insolvency and Governance Act last month in a bid to mitigate the economic fallout for struggling companies in the Covid-19 epoch. The impact of the reforms on the trade and commodities space is significant, especially given many international financings and commercial arrangements in those sectors are governed by English law.

Prospect Resources selects Renaissance Securities to advise on Arcadia sale

Germany approves coal phaseout by 2038
6 July 2020

Thor Mining's Molyhil awarded Major Project status
6 July 2020

Nevada Copper appoints Andre van Niekerk as CFO
6 July 2020

Dominion Energy, Duke Energy scrap Atlantic Coast Pipeline project
6 July 2020

First Mining closes First Majestic funding deal for Springpole Gold Project
3 July 2020

EBRD agrees working capital loan to Ukraine’s Grain Alliance
3 July 2020

Dentons advises bank syndicate on $166m Tristar vessel leasing
3 July 2020

Sayona adds Evercore to North American Lithium bid team
3 July 2020

Japan seeks stoppage of 100 inefficient coal plants by 2030
3 July 2020

Endeavour seals Semafo deal, hires Desormeaux as president
3 July 2020

Roxgold refinances Yaramoko Facility and secures extra $20m
3 July 2020

Orla Mining hires Sean Spraggett as General Manager, Panama
3 July 2020

MUFG uses Komgo's Trakk for Mercuria-Gunvor oil deal
2 July 2020