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Commodity financing

 

Valvestock’s Structured Commodity Finance team provides funding to a broad customer base at different levels of the capital structure, using various assets as collateral. Our ability to value and manage collateral efficiently enables us to provide optimal financing structures that are tailored to the specific requirements of our clients.

We provide funding solutions for exchange-traded commodities in the form of pre-export finance, borrowing base facilities, transactional finance, mezzanine finance and equity:

 

Pre-export finance	Financing of inputs secured against physical production Combinations with off-take agreements and price risk management solutions also possible
Borrowing base facilities	Working capital facilities secured against accounts receivables, inventory, forward contracts, equity and cash
Transactional Financing	Working capital secured by title over specific assets from source through to end-user
Physical Trading	Physical purchase and sale of exchange traded commodities in storage or in transit
Mezzanine Finance	Capability to deliver a variety of mezzanine financing structures to clients
Equity	Close partnerships with several businesses through equity financing Equity interests in production and trading companies

 

Commodity finance aims to provide short-term, self-liquidating finance facilities to a range of trading companies from the mid-sized specialist product trader to the globally-integrated major trading houses. These facilities may be secured or unsecured depending upon our perception of the creditworthiness of the borrower and the structure of the business we are undertaking. Our major business lines comprise steel and base metals, energy products and agricultural commodities. Generally we target business where there are liquid terminal markets for the underlying commodity, but we will also work selectively with market-leaders that trade less liquid commodities.

Valvestock’s trade finance team for commodities operates on a global basis providing comprehensive solutions for the finance of international trade. We employ a team of professionals, all of whom have multi-year experience in commodity finance and can offer our customers a range of traditional or bespoke commodity-finance solutions using a full range of products, including:

• Issuance of Letters of Credit
• Standby Letters of Credit
• Guarantees and similar trade finance instruments
• L/C confirmation services

Warehouse and receivables financing
The Commodity Finance team also works in close cooperation with colleagues in pre-export, shipping finance, and Export Credit Agency backed finance to deliver a comprehensive solutions based offering to all of our customers, however large or small.