Financing and hedging in international commodity trading
Are you active in the international commodity business or do you supply a buyer who is active in the commodity business? DZ BANK will support you worldwide in your financing and hedging projects. We offer tailor-made solutions along the value chain, from purchasing, storage and processing to the sale of raw and semi-finished products.
The loan is granted to a company based in an emerging market country, which uses the funds for the production, purchase, storage and ultimately export of raw materials. Buyers are companies in industrialised countries with an excellent credit rating. The loan is repaid out of the export proceeds; in this case the buyers pay directly into an account of the lending bank.
Such financing follows the value chain from the purchase of the goods to full payment by the buyer. It is also conceivable to finance individual stages along the value chain.
With this product, lending is linked to the value of inventories and/or receivables and offers flexibility in the face of fluctuating commodity prices.