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.
Boris Jaquet, EMEA Head, distribution, Deutsche Bank talks to TXF’s Katharine Morton about his views of the state of play of the Credit and Political Risk Insurance (CPRI) market and how to get the best from CPRI ahead of the TXF Conference in London on 4 December 2019
Given its status as the world's second largest aluminium producer, Rusal's sustainability-linked loan debut is good news for the growing ESG movement. But like other deals in the commodity sector that have closed before it, the financial structure in Rusal's deal lacks the teeth to leave no doubt that it is not tinged with a bit of greenwash.
Are corporate treasuries, fintechs and banks missing a trick on cross border working capital optimisation and what will the next five years hold? TXF's roundtable discussion of digitisation and international trade hosted in London by DBS highlights where the sweet spots will lie.
Join the movers and shakers of the political risk and trade credit insurance market for a day of networking, education and collaborative discussion
The fun in the sun returns! Bringing all key players together for two days of networking, we explore case studies of the latest deals and examine the next hot opportunities across the region.
Get a fresh look at the Asian Commodity Finance market, share your views and make real connections with regional deal-makers.
TXF Africa 2020 will focus on recent and forthcoming developments across regional export, project & commodity finance and explore new opportunities for each market.
Lead the revolution: join us for the most valuable networking opportunities and exciting content on the commodity finance market and deals
The global export, agency & project finance games return for 2020! Join us in Madrid for the largest gathering of its kind with a vision to taking your network further than ever before.