"The expert capacity role of Redbridge has been instrumental in supporting our global treasury team to implement additional bilateral facilities in an effective manner. "

Alistair Mules
Group Treasurer

Summary of the engagements

  • Accompany Traxys with the implementation of several bilateral transactional commodity finance lines

Objectives

  • Further diversify sources of group liquidity
  • Maintain a “lean and mean” structure fully aligned with the core syndicated facility of the group
  • Accelerate implementation process as driven by business needs

Outcomes

  • Several facilities with European and North American banks have been implemented representing up to USD 255 million of additional liquidity for the group
  • Facility structures were aligned to the group policy and designed to meet the specific flow needs of Traxys with focus on operational flexibility
  • Maximized liquidity: advance rates, asset classes, clean tranche
  • Overall reduced cost of capital

Methodology 

  • Design target terms sheet / structure of target optimal facility based on Traxys trade flows and global bank policy
  • Agreed best practice approach in dealing with banks under guidance of Traxys treasury and counsel teams
  • Detailed review and analysis of each bank’s proposal
  • Related iterative negotiations aimed at converging to targeted structure and conditions until finalisation
  • Review and analysis of all transaction documentation
  • Bi-weekly steering committee with Traxys treasury team discussing progress
  • 24 to 48h turn around time to every Traxys and bank query or iteration
  • Close follow-up of process with both Traxys and each bank

Redbridge’s added value

  • Dedicated expert capacity across complex commodity trade finance techniques
  • Thorough understanding of banks’ practices and drivers of their behavior
  • Structured analytical process allowing to analyze, synthetize and issue recommendations on large number of bilateral bank discussions
  • Multi step negotiation approach that allowed reaching optimal terms and conditions from a diversified panel of specialized international lenders

 

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