Commodity Finance

We work with all the players in the commodity sector, from producers, major traders and regional traders to processors and distributors, providing them with appropriate financing structures. We support them throughout the value chain, i.e. from production through to the delivery of raw materials to their processing sites or consumption venues.
We provide clients with all the banking instruments for financing commodities flows and securing the payment of commodities. Our financing is most often short-term, but we provide specific support for longer-term transactions such as stock financing or pre-export financing.

Our 80 experts operate in energy (crude oil, refined oil products, gas, petrochemical products), ferrous and non-ferrous metals (iron ore, steel products, base metals), agricultural products (coffee, sugar, rice, grains, cotton, etc.), as well as the emerging sustainable commodities such as biofuels, carbon credits and many others that we are developing together with our clients.

Teams are backed by the support of back offices (documentary credit and guarantees) boasting extensive expertise and close relationships with our customers.
 

The Commodity Finance business is based on four major operational platforms in:

-    Geneva, 
-    Singapore, 
-    New York,
-    London, with a team specializing in structured export pre-financing arrangements.

Our teams are also present in Sao Paulo, Shanghai and Hong Kong SAR. The Commodity Finance business is managed globally from Geneva.

Our teams are also present in Sao Paulo, Shanghai and Hong Kong SAR. The Commodity Finance business is managed globally from Geneva.

TRANSACTIONAL COMMODITY FINANCING (TCF)

Generally short term (within 1 year) in support of the sourcing, transportation and distribution of commodities, the financing instruments and products include but not limited to: 

-    Documentary credits
-    Standby letters of credit
-    Documentary collections
-    Bank guarantees
-    Bid / Performance bonds
-    Financing of:

o    receivables
o    inventories (storage financing)
o    margin calls related to price-risk hedging transactions 

-    Borrowing base
-    Tolling
-    Syndicated or club deal facilities
We are also pursuing our efforts to implement and invest in technologies, both directly and indirectly in partnership with Fintechs. An illustrative example in this respect is our partnership with Komgo. 

STRUCTURED COMMODITY FINANCING (SCF)

We provide short-to-medium term bilateral or syndicated prepayment or pre-export financing to public or private companies that produce and export commodities.
These are self-liquidating term facilities backed by cash proceeds from a commodity supply contract entered into by a producer (exporter) and an offtaker.

The two key SCF structures are:

-    A direct loan to the Beneficiary -“Pre-export Financing” or 
-    Indirect funding via advance from Beneficiary’s buyer - “Prepayment Financing”.

GREATER EFFICIENCY FOR CLIENTS WITH NEW TECHNOLOGIES AND KOMGO

Crédit Agricole group has partnered with major industrial players in the commodity sector and with other banks to launch Komgo SA, an innovative platform aimed at digitizing commodity and trade finance activities.
Based in Geneva with a presence in the Americas and Asia, the Komgo network provides clients with several modules to improve the commodity trading process by increasing the efficiency and security of transactions and their financing. 
As a founding shareholder, Crédit Agricole group is fully invested in the Komgo project and has made it part of its medium-term strategic plan.

To secure our trade finance environment, Crédit Agricole CIB provides a link to drag & drop PDF documents already registered on Komgo Trakk that you have received from third parties to check their authenticity
Access the platform

Crédit Agricole CIB has been a pioneer in the field of sustainable finance and is firmly committed to finance the real economy. Our clients, thanks to their adaptability, organization, networks and expertise, are key players in the energy transition.

Our ambition is therefore to support them in their trajectory towards a less carbon-intensive economy and to provide them with the most relevant and innovative financing solutions and products in terms of ESG.

With Sustainable Finance teams, we endeavor to develop Green & Sustainability-linked structured financings (loans, guarantees and Letters of Credit / Standby Letters of Credit), which include but not limited to: 

•    Certified green commodities underlying (e.g. BCI cotton, ISCC certified of biofuels): refers to commodities transactions supported by certifications that are recognized or qualified by our Sustainable Banking;

•    Sustainability-linked committed or uncommitted syndicated / club deal or bilateral facilities (with sustainability KPIs mechanisms): financial characteristics of the facility can be adjusted whether the client meets the predefined sustainability objectives / Key Performance Indicators.