Natixis supports launch of a transforming inventory financing solution in the commodity trade finance space

Natixis and a consortium of banks recently supported the launch of a tailor-made securitization program backed by commodity inventories for Trafigura, one of the world’s leading independent commodity trading and logistics companies.

Trafigura has led a USD470 million non-recourse securitization program backed by commodity inventories across twelve jurisdictions for Trafigura Commodities Funding Pte Ltd.

Trafigura Commodities Funding Pte Ltd (“TCF”), a stand-alone vehicle incorporated in Singapore, issued USD470 million of senior variable funding notes. The proceeds of the notes placed with the banks will enable Trafigura Commodities Funding Pte Ltd to purchase crude oil and refined metal inventories in twelve jurisdictions.

Natixis brings its strong industry expertise to this inventory solution program by acting as the collateral agent and liquidation agent to manage underlying risks related to commodities (i.e. quality, storage, price, hedging) to be owned by TCF.

“Our strong industry expertise has enabled Natixis to accompany Trafigura on this strategic and pioneering transaction. This transforming program was structured hand-in-hand between Trafigura and the Global Energy & Commodities team of Natixis. Our goal is to remain at the forefront of innovation in the commodities space to best serve our clients,” explains Dominique Fraisse, Global Head of Energy & Commodities.

“The launch of Trafigura Commodities Funding Plc is a milestone for the financing of commodity inventories on a non-recourse basis and for our industry. Natixis played a critical role in the structuring of this financing solution thanks to its strong understanding of the industry and its client focused organization,” said Laurent Christophe, Head of Corporate Finance for Trafigura.

This transaction illustrates Natixis’ ambition to deepen its expertise in Energy & Commodities sector, in the framework of its New dimension 2018-2020 strategic plan.