Structured Trade Finance
Structured Trade Finance (STF) is a specialised activity dedicated to the financing of high value commodity flows.
STF techniques are used largely in the commodity sector by producers, processors, traders and industrial end users, and include:
- warehouse financing (working capital financing secured by a charge and third party control over commodity inventories) including Debt Variant, Repurchase (Repo) and Exchange Variant).
- borrowing base financing (working capital financing structured on a client's inventory and receivables).
- tolling finance (working capital financing for processors based on the raw materials and off-take of corresponding finished products).
- pre-export finance (capital expenditure financing secured by medium-to-long term off-take contracts with strategic buyers).
- prepayment finance (limited recourse financing used to secure long-term supplies from strategic partners).
- reserve based lending (capital expenditure financing secured by oil and gas or mining reserves underground).
Each financing arrangement is tailored to the particular needs of the client. Repayment of STF transactions is made through the sale/export proceeds of the commodity and can be used to finance short-term working capital or long-term capital expenditure for a period up to five years.
What we offer
ANZ's specialist STF team focuses primarily on "upstream" financing of cross-border commodity flows and limited recourse trade finance in order to:
- enhance the credit rating of the facility beyond that of the borrower.
- mitigate the cross-border and country risk.
- produce a transaction where the whole proposition is more resilient than the sum of its parts.
Benefits for the customer include:
- securing strategic procurement.
- diversification of funding.
- greater access to finance for customers.
- enhanced management of transport costs and/or delivery timeframes.
To find out more about Structured Trade Finance, please contact our Trade Finance Desk.
Call 0800 269 873, 9am to 5pm, Monday to Friday.
ANZ lending criteria, conditions and eligibility criteria apply and fees may be payable.