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.
TXF last week held its annual Cape Town Conference on southern African Commodities, Export & Project Financing. Here, Jonathan Bell highlights some of the key takeaways from the event and some further recent important major project developments.
There has been innovation within commodity and trade finance structures as market participants and practitioners get more ambitious with the tools available to them. TXF caught up with Catherine Lang-Anderson, counsel at Allen & Overy, to discuss such innovations alongside other topics like sanctions, M&A activity in the commodities sector and blockchain.
TXF France 2019 will take a focused look at the French export finance market, concentrating on the issues that matter. Hear from high-level speakers and get the chance to have your say in interactive sessions.
A capped attendance event of 120 senior representatives - join TXF Moscow and uncover the latest opportunities for export finance in this region.
Cut through the uncertainty of this market with our interactive sessions and connect with the local professionals looking to make deals.
Get a fresh look at the Asian Commodity Finance market, share your views and make real connections with regional deal-makers.
TXF Africa brings together the leaders of export, commodity and project finance in the region. Discussing everything from the continent's continual need for infrastructure financing to the latest technologies taking the agri world by storm - we've got you covered!
The 6th edition of this global event returns to Amsterdam for the best networking and discussion in town. Harness the power of the flower at TXF Amsterdam and get psychedelic solutions to your financing needs.
Your largest export, agency & project finance event returns for 2019! Firmly rated in the industry as having rock-star status, we bring the show to Berlin. For those about to finance, we salute you...