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Structured Trade Finance

structured-trade

Our structured trade finance and collateral management services are designed to support credit transactions in situations where borrowers, especially in the trading and agricultural sector, are unable to offer the traditional forms of collateral security for loans to support their businesses.  Our services apply the use of warehouse receipts to provide a key credit support function that allows a financier to lend against a borrower’s trading assets instead of fixed asset collateral.

The use of warehouse receipts is often associated with structured financing transactions, which basically assure the financier that if a transaction proceeds normally then they will be automatically reimbursed (i.e. the loan is self-liquidating), and if it goes wrong the lender has recourse to securely managed collateral that can be liquidated with minimum difficulty and cost.

The warehouse receipts can be transferred to lenders under pledge, an arrangement under which title to the goods and any appreciation in value of the asset, less the cost of storage and finance, remain with the borrower. The lender can only dispose of the goods only when the borrower defaults on his payment obligations. The receipts may also be transferred to trade counter-party, allowing the holder to take delivery of the commodity upon presentation of the warehouse receipt at the warehouse.

  • Support to Agricultural financing
  • Warehouse Receipting
  • Import / Trade Financing
  • Tax and Freight Credit Financing
  • Collateral Management Services
  • Training in Structured Trade Finance

For more information, please contact us

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