Nedbank Corporate and Investment Banking reposted this
Well done Khaled ERNEZ and Xavier Araud for succesfully structuring and closing this complex transaction! This achievement sets a positive precedent in the industry and is sure to inspire many. I am very proud that Nedbank Corporate and Investment Banking was able to support Trafigura with this inaugural facility as Lead Arranger. It is a testimony to our expertise and growth aspiration in the commodity trade finance sector.
Trafigura has announced the closing of its inaugural uncommitted discounted facility of credit-insured receivables and prepayments for a total amount of USD1 billion. This facility, with seven participating financial institutions, has been strategically structured to optimise the accounting treatment of insured receivables and prepayments in accordance with the Capital Requirements Regulation. This innovative approach transfers the credit risk from the end buyer or producer to the insurer, enabling banks to discount these receivables. Stephan Jansma, Trafigura’s Group Chief Financial Officer said: “This is the first time a commodity trading company has successfully aligned the interests of financial institutions and insurers around a syndicated facility of this nature, allowing off-balance sheet treatment of receivables and prepayments. We’re grateful for the strong collaboration with our financial institutions, insurance and legal counterparties to successfully conclude this new facility.” Read more here: https://lnkd.in/ewykvDEm #ConnectingVitalResources #Trafigura