Benefit from high-yield credit finance by filling the gap in international trade finance due to the current market disruptionsThe Business
The Sponsor of this opportunity currently facilitates export trade and supply chain finance via technology and structured derivatives. It sponsored the formation of a ?2 billion commercial paper facility that focuses on receivable finance in northern Europe, primarily in automotive, electronics and services. It also set up an emerging market export trade structure, funding exporters as trading principals rather than as a lending agents. This structure was formed in partnership with a major European bank. Its focus was pre-export finance to high-quality exporters in Latin America. With revolving balances of between USD150-350 million, it turned over 3-4 times per year.
The Sponsor is raising $100mm for a trustee administered investment vehicle to be used to invest in global supply-chain finance opportunities. The investment consists of committed drawing rights with 15 day notice. Funds will be used to invest in alongside local banks.
Market
The Sponsor believes that:
There is a desperate shortage of financing to support global trade, even when the importer (payor) is strong and pays in hard currency.
Financing of exporters from the Asia/Pacific emerging markets has usually centered on enforcing payment claims within the uncertain legal environments of those emerging markets.
Data systems technology have been slow to integrate into the manufacturing progress and invoicing process.
The Sponsor?s receivables financing can decrease the operating capital requirements by as much as 60% for some manufacturers.
Approximately $229billion in annual trade with the U.S. and Europe has essentially had no access to trade financing.
This represents the high-yield end of the trade finance spectrum, sustainable 2%-5% per month in the Retail & Boutique sectors.
Sector: FundsSegment: Trade FinanceRegion: North AmericaFinancing Size: More than $100mContact: Philippe Der Megreditchian
Company: OLMATelephone: +33 6 03 88 30 13Email: [email protected]