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.
Our focus is on Structured Commodity Trade Finance due to the fast capital deployment, lowest default rates relative to any other interest-based asset class, and global diversification thanks to our network of commodity trading companies.
Synthesis’ main objective is to offer consistent, strong returns that are unaffected by volatility in stock and bond markets. We achieve this by directly purchasing the goods from their supplier and then selling the goods directly to their purchaser, instantly removing a substantial portion of the credit risk.
Every transaction that we finance is individually checked and monitored by us, allowing us to maximise security and continually review our investments.
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:
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.
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
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.