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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New SCF for the new normal in emerging markets
New SCF for the new normal in emerging markets
Katharine Morton
25 September 2020

Live Webinar | 30.09.2020 | 14:00 UK | As the world emerges from the current crisis, it’s fair to say that global supply chains have been disoriented and globalisation retrenched. It’s never been more important for companies in emerging markets to get access to liquidity to keep supply chains moving efficiently. TXF & Finverity look at new ways for companies to effectively use digitisation in emerging markets to access financing for sustainable international trade. Register Today

Debt service guarantees on Yamal LNG removed from Novatek
25 September 2020

Pebble Partnership CEO resigns after secret tapes released
25 September 2020

Eneos to shift PetroChina JV to Chiba oil refinery
25 September 2020

Atalaya plans 50MW solar plant at Riotinto copper mine
25 September 2020

BHP set to take 75% stake in Encounter's Elliot Copper project
25 September 2020

Trafigura proposes IMO carbon levy to cut shipping emissions
25 September 2020

Hontop’s bank debts 'close to being settled'
25 September 2020

Husch Blackwell appoints Jai Khanna as project finance partner
24 September 2020

KrisEnergy gets funding to bring Cambodia offshore project online
24 September 2020

US charges former Vitol manager over graft in Ecuador
24 September 2020

Quaterra announces C$3m private placement financing
24 September 2020

Keppel Shipyard FSRU to operate offshore El Salvador
24 September 2020

Zimbabwe’s largest platinum mine clears Afreximbank funding hurdle
24 September 2020

EBRD agrees €217m loan to Georgian Oil & Gas Corporation for Eurobond refinancing
24 September 2020

Polyus to take 100% of SL Gold, Sukhoi Log
23 September 2020

BPL Global announces New York hires and Israeli partnership
23 September 2020

Afreximbank announces new Director of Syndications and Agency
23 September 2020

EBRD agrees $20m trade finance limit to Crédit Agricole du Maroc
23 September 2020

BNP Paribas Swiss business joins commodity trade finance exodus
23 September 2020

Pasofino gains 49% stake in Dugbe JV, seals project financing
23 September 2020

Mercuria returns to launch Asian RCF
23 September 2020

Mount Isa copper smelter gets three more years
23 September 2020

DEG finances peanut processor in Nicaragua
23 September 2020

$260m Bhavnagar port compressed natural gas terminal is approved
23 September 2020

General Electric vows to stop building coal-fired power plants
23 September 2020

Bidders line up for Exxon’s UK North Sea oil and gas assets
23 September 2020

TXF TV: Advocating for the commodities industry
TXF TV: Advocating for the commodities industry
Aife Howse
23 September 2020

Live Webinar | 23.09.2020 | 14:00 UK | Join us for a one-on-one interview with the STSA's Secretary General, Florence Schurch.

Queensland awards gas exploration tenders to 4 companies
23 September 2020

Trade finance funds: Confidence grows as banks retreat
Trade finance funds: Confidence grows as banks retreat
Aife Howse
22 September 2020

Alternative lenders cannot solely pick up the funding gap left by European commercial banks retreating from the commodity finance space in the Covid-19 epoch. But can bank-fund collaboration based on the different stages of the transportation of goods provide a viable deal template going forward?

Shell launches major cost-cutting drive to prepare for energy transition
22 September 2020

SACE backs Danieli in hot-rolled steel deal with Metalloinvest
22 September 2020

Ecuador's Constitutional Court approves referendum on mining in Andean city
22 September 2020

JSW Steel likely to raise up to $1bn via offshore route
22 September 2020

Norway to launch $2.7bn Longship carbon capture and storage project
22 September 2020

Yancoal cuts Australian mine spending
22 September 2020

TXF TV: Advocating for the Commodities Industry
TXF TV: Advocating for the Commodities Industry
Aife Howse
22 September 2020

Live Webinar | 23.09.2020 | 14:00 UK | Join us for a one-on-one interview with the STSA's Secretary General, Florence Schurch.

Teck unveils VP appointments
22 September 2020

Olam Cocoa hits 100% traceability target across its direct global supply chain
22 September 2020

Bulgartransgaz borrows €455m to finance key projects
22 September 2020

Petrobras opens rebidding for refinery - but may end up keeping it
22 September 2020

Maverix to acquire gold royalties from Newmont
22 September 2020

Steelmaker 'CSN hires banks for IPO of mining unit'
21 September 2020

Fireweed Zinc announces Senior VP Projects hire
21 September 2020

Mizuho reaffirms place in European commodities finance
21 September 2020

AVZ Minerals lifts equity stake in Manono Lithium and Tin Project
21 September 2020

Altona signs heads of agreement over Nankoma Rare Earth Project
21 September 2020

Wheaton Precious Metals plans London listing
21 September 2020

Chad asks Glencore for debt payment suspension
21 September 2020

International lenders 'back $9.5bn financing for Russia's Arctic LNG 2'
21 September 2020