OUTLINE

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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

 

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BACKGROUND & FEATURES

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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.

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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.

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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.

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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. 

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Click here to see a Flow Diagram of the Transaction.

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

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

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