At MUFG, we understand the critical importance of the production and export of natural resources to many countries' economies and their ability to generate hard-currency revenues.
Our industry-leading structured trade finance (STF) team is backed by the international scale, financial strength, and global network offered by the MUFG group.
Our STF team arranges medium-to-long-term loans for commodity producers and processors, who are primarily based in emerging markets. We also serve large commodity traders looking to finance their prepayments to commodities producers.
Our STF products help clients to finance their capital investments – such as upgrading and expanding production capabilities. They can also fund their working capital requirements throughout the production, processing, and sale cycle.
STF facilities are usually backed by certain underlying commodity export flows and rely on segregated cash-flows derived from such export flows as the primary source of repayment.
These tailor-made products include:
- Pre-export financing
- Structured prepayment financing
- Reserve-based lending
- Structured inventory monetisation
- Financing advisory services
Thanks to the structured and secured nature of STF products, borrowers are able to tap into the international banks structured loans market. This gives access to a wider liquidity pool at competitive financing rates.