A FULLY SECURED, HIGH-RETURN

TRADE FACILITATION PROGRAM

IN REFINED FUELS

OUTLINE

Nature of Investment:

Fully Secured Revolving Trade Facilitation Programme

Structure:

Back-to-Back Transaction Collateral Instrument (e.g. SBLC)

Minimum Participation:

US$100 million

Return:

4%-6% per month (48%-72% per annum)

Duration: Normally, 60 months (with option to renew)

Purpose:

The collateral provided by the Investor facilitates the transfer of fuel

from a Refinery’s tanks to a Major Buyer’s tanks or ship

 

BACKGROUND & FEATURES

Long-Established Distributor

Linking Refineries with Major Buyers

We are working with an established Distributor of refined fuels with long-standing relationships with major refineries and buyers (airlines, shipping groups and oil companies). This opportunity has arisen following developments in 2017, including a change of structure in the Distributor’s business and an expansion of the Distributor’s already substantial fuel allocations from refineries.

Transfer of Allocated Fuels

Secured by Back-to-Back Collateral (SBLC’s)

Collateral by way of a Financial Instrument (such as Standby Letter of Credit - SBLC) is needed to facilitate the transfer of fuel from Refineries’ tanks to those of Major Buyers. This is in turn underwritten by a corresponding SBLC from the Major Buyer. For now there are no pre-set limits to the Program.

Exceptional Discounts Generate Exceptional Returns

Thanks to the large, regular shipment volumes and substantial discounts available to the Distributor, investor returns are exceptional. Shipments are on a monthly basis for 60 months. Profits are based on fixed discounts, and are shared 50/50 between Investor and Distributor. The impact of any fluctuation in market prices can be mitigated by contractual arrangements.

A Simple, Efficient Transaction Structure

A leading and long-established US law firm with a worldwide oil & gas practice sets up a Special Purpose Vehicle (SPV), owned 50/50 by the Investor and the Distributor. All payments are effected through the SPV’s secure escrow account managed by the lawyers. The Buyer’s SBLC underwrites all payments. 

Click here to see a Flow Diagram of the Transaction.

If you have a password and wish to see full information, click here.

Please use the form below to request a Non-Disclosure Agreement and full information.

 

 

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