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Structured Trade and Commodity Finance.

Connecting Capital with Global Trade

We finance transactions not Companies. We are not a lender in a traditional manner and we do not provide loans to companies. All funding that we provide is repaid upon completion of the transaction and our exposure ends at that point.

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Investment Vehicles

  • Securitizations Programme

    A strategic way for bond investors to obtain a high yield return from a diversified trade finance portfolio. All underlying transactions are synthetic investment grade due to the use of A- or better rated credit insurance and letters of credit and have a maximum tenor of 124 days.

    Bankruptcy-remote SPV structure ring-fences the excess spread to provide additional protection for investors.

    The notes will be:

  • Listed on the Luxembourg Stock Exchange
  • Available for trading on the Euro-MTF market
  • Deliverable in Euroclear, Clearstream and CREST
  • Trade Finance Funding Opportunities for Third Party Investors

    In a Master Risk Participation Agreement we provide all of the legal and transactional structure, simply requiring the the third party investor to select transactions to fund. This allows the investor to fund transactions based around their own liquidity needs.

Goods We Finance

Agricultural Commodities
e.g. grains and beans
Agricultural commodities are often seasonal which makes it harder for small companies to raise finance. Using our strong market knowledge we can seek out mutually beneficial relationships.
Oil and Energy Products
e.g. petrol, aviation fuel
With buoyant consumption of oil products around the world and long delivery times, there is continual demand for funding.
Semi-finished or Finished Goods
e.g. branded pharmaceuticals
A proportion of our portfolio may be used to finance pharmaceuticals, and other products, as long as the end buyer is credit insurable, and margins are strong.

Focused on Structured Commodity Trade Finance

Structured Trade Finance (‘STF’) has been in existence for almost thirty years. Unlike with "traditional" Trade Finance, where lending is dependent upon the credit quality of the borrower's balance sheet, in Structured Trade Finance, a self-liquidating arrangement is created, focusing on the underlying transaction itself.

STF means the financing of trade against robust collateral with focus on each transaction. We do not finance the production and marketing of commodities, but rather their physical delivery from supplier to buyer.

With STF, lenders no longer look to borrowers as direct sources of repayment, but rather to the underlying assets arising from the financing, namely the goods financed and the receivables arising therefrom.

Accordingly, Structured Trade Finance makes it possible to isolate certain risks and convert uncertainty to some certainty (‘predictable cash -flow’) due to the self-liquidating nature of transactions.

This is a new brand of “Socialized Lending”, assisting both lenders and borrowers without “winners” and “losers” to transactions, and contributing to global growth.

Connecting Capital with Global Trade: Structured Trade Finance

  • Enabling Global Trade
  • Non-Speculative Investing
  • Uncorrelated Returns
  • Ultra-Low Default Rates
  • Strong, Consistent Returns
  • Use of Cost-Saving Technology

Why Trade Finance?

Trade Finance has historically been something that only banks have been able to engage in. Synthesis Structured Commodity Trade Finance Limited is changing that, bringing one of the most secure asset classes to professional and institutional bond investors.

Press Releases

11/22/2016
While banks remain key to the trade financing process, the input of corporate trade finance through securitisations has been on the rise. A structure from Synthesis could offer institutional investors new pathways into the commodity financing space.
07/11/2016
GTR recently teamed up with law firm Holman Fenwick Willan (HFW) to conduct a survey on the future of the commodity trade finance market focusing of four main topics: the role of securitisation in trade finance, alternative finance, digital solutions and sustainability.