TXF Global Commodity Finance Virtual 2021
We're proud to be bringing back TXF Global Commodity Finance, a must-attend event for the commodity finance community.
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.
Has the secret sauce to trade digitisation been discovered in MLETR and is it something that will get over a decade of industry fatigue on the subject? Will the trade industry be able to get the sauce out of the bottle, will everyone like the same sauce, will they need to?
Born out of the concern that financial institutions were not adequately accounting for their exposure to climate-related risks, TCFD has targeted industry-wide adoption, however many in the export finance sector remain ambivalent. So, where does TCFD stand, and what needs to be done to overcome industry inertia?
TXF spoke to Julian Longson, CEO at Pole Star, amid a period of progression for the maritime tech and regulatory compliance firm following a significant growth investment from Wavecrest Growth Partners and Abry Partners. Pole Star will not just be boosting sales and hiring, but is also extending its PurpleTRAC solution to integrate ESG compliance into its model, amongst other product developments.