03 April 2025Publication
Credit insurance and risk mitigation
We consider the role of credit insurance as credit risk mitigation in light of the Basel III reforms in both the UK and EU.
Our international trade and commodity finance team advise on the whole range of trade and commodity finance products. Our lawyers regularly provide advice on large, complex transactions, offering innovative solutions and a commercially focused approach to transactions.
Through our international network, which includes strong relationships with law firms across Africa, we advise on transactions around the world. We draw on the skills of our commodities, regulatory, tax, insurance, environmental, dispute resolution and restructuring and insolvency specialists to provide clear and innovative advice. This includes on OHADA law and Islamic finance structures.
We understand the individual nuances of different assets, including physical and financial commodities, industries and products and we have the commitment, resources, experience and know how to get deals done, whatever and wherever they are.
Advising on the whole spectrum of products
Our lawyers regularly advise on the whole spectrum of trade and commodity finance products, including:
- Commodity financing, such as prepayment financing, warehouse/inventory financing and monetisation, commodity transit financing, borrowing base financing and commodity repo transactions
- Receivables financing, such as pre-export financing, invoice discounting and supply chain finance programmes
- Export credit agency-backed financings
- Trade finance instruments
Our first-hand knowledge of the issues that may arise on the restructuring and enforcement of these products means we are ideally placed to advise our clients on how best to structure and document trade and commodity finance transactions. We protect our clients from unforseen risks and help them avoid or mitigate against future issues arising on the transaction.
Sector and industry knowledge
We act for many different types of participant in the trade & commodity finance market from lenders (including major international trading and commercial banks and funds) and borrowers (including trading companies), to pipeline and warehouse operators and beneficiaries of trade instruments, and so it is important for us to understand the sectors and industries in which they operate.
We have extensive experience of transactions involving all of the major commodities and understand the infrastructure that is in place to store, process and transport them. We are able to use that experience to give our clients practical advice as to how to structure trade & commodity finance transactions to achieve the least operational inconvenience to them and their clients whilst ensuring that they are properly protected.
Our experience
Concentrates borrowing base facility
- advising MRI Trading AG on a US$110m secured borrowing base facility to finance its metals concentrate storage, blending, sale and related margin financing operations in Malaysia and Oman.
Borrowing base facility enforcement
- advising the lenders on the enforcement of a secured borrowing base facility and the subsequent recovery process on the insolvency of a large European refinery group.
Pre-export financing
- advising Standard Chartered Bank (Hong Kong) Limited on a pre-export and import revolving facility to Wagner Equipment to finance its Cat mining trucks and equipment import activities in Mongolia. This deal was named as Best Structured Trade Finance Solution in Mongolia by The Asset Asian Awards 2014.
Key contacts
If you have any questions, contact a member of the Trade and Commodity Finance team for assistance:
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