Tune into TXF Global Commodity Finance 2020
TXF’s Global Commodity Finance conference 2020 has kicked off via our brand new networking-first virtual platform from 4-6 November.
There is plenty to discuss at TXF’s Global Commodity Finance conference 2020, which kicked off today via our brand new networking-first virtual platform, with the curtains closing on this spectrum of content on Friday this week. And we have already registered over 1000 e-delegates.
From the exit of ABN Amro and BNP Paribas from commodity trade finance amid a spate of fraud cases in Singapore’s energy sector to depressed oil and gas prices, trading houses are having to re-evaluate their financing strategies in the wake of the Covid-19 pandemic.
With major international banks pulling out of the sector and other banks restricting the supply of credit too, the pool of funds available to traders is shrinking, as the flight to quality corporate credits for lenders heavily exposed to the industry continues.
The rise of alternative funding structures - particularly family offices and smaller trade funds - are helping to diversify the funding mix for traders, especially second and third tier corporates. But trade funds remain more expensive than banks. Although, as international banks' cost of funding increases, so does the overall cost of bank debt, which will comparatively render some trade funds a more competitive financing solution going forward.
What is certain is that there is ample demand for trade finance. The global trade finance gap was estimated between $2 trillion to $3.5 trillion by the ICC and WTO. And given commercial banks’ waning appetite has also been borne out of tightening Basel capital requirements and associated balance sheet constraints, more corporate borrowers are turning to funds for financing.
However, trade finance funds alone cannot provide the debt volumes, or low-level pricing, needed to plug the burgeoning commodity finance funding gap left by commercial banks retreating from the space. And the role of larger producers/traders acting as lenders (on-lending RCFs to secure offtakes with smaller traders) will undoubtedly grow over the coming years.
TXF intends to shine a spotlight on all these trends over the course of the week. With a state of the art event platform and the most up to date content, TXF Global Commodity Finance will connect delegates from across the globe and help companies prepare for a profitable future beyond Covid-19.
This will be a fully virtual event, not a webinar, with online speaking panels and live Q&As, virtual breakout rooms for intimate discussions and a fully functional networking tool that allows you to not only message online participants but also invite them to your own personal virtual room, and for sponsors that room can hold up to 200 people!
To join deal makers from across the globe for an unmissable virtual event to explore all the most prevalent trends and changes in the market, please register here. Don’t forget if you miss out on any sessions this week, you can catch up on them via our on demand option.
Now time to get up to speed with the markets
Here's a selection of original TXF Subscriber articles recently published
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Texan energy storage portfolio nears financial close
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Orsted hires Giamarino
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Resgen coal mine financing halted following lender withdrawal
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Changhua 1 financing nearing close
The $2 billion-equivalent limited recourse debt financing for the Orsted-led 605MW Changhua 1 offshore wind project in Taiwan is progressing, with Orsted’s potential equity partners said to be looking at the loan agreements before signing.
Ukrainian road PPP pre-feasibility study underway
The World Bank and the IFC are completing pre-feasibility studies for six road projects in Ukraine, with the prospective projects potentially being brought to the markets as PPPs.