Commodity Finance

This is a term used to describe financing technique whereby the commodity (goods) imported are placed at the custody of collateral manager. The commodity becomes the collateral and only released to off- takers at the order of the Bank (release order).  
The off- taker is expected to deposit funds to an Escrow / Collection Account before acquiring the release order from the bank.
Features;

  1. Self liquidating
  2. Off balance sheet lending
  3. Bulk importation (e.g. oil, commodities etc)
  4. Monitoring/control of commodity under the collateral manager.
  5. Any disbursement of funds, interest will be charged at applicable rates. Non fund based facilities, LCs and Guarantees.
     

 


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