Galena Asset Management, a wholly-owned investment subsidiary of Trafigura, has successfully completed the first funding within a $155 million, closed-ended three-year Committed Prepayment Portfolio Fund. The Galena Commodity Credit Fund is a first of its kind in the commodities industry.
Chin Hwee Tan, CEO of Asia Pacific for Trafigura, said: “Product innovation is key for Singapore as a financial hub and we are proud to have supported the first structure of its kind in the fund management and commodities industries.”
The fund was raised with private equity and senior debt provided by a syndicate of core banks for the group – Lloyds Bank, Sumitomo Mitsui Banking Corporation and SuMi TRUST Bank. The Galena Fund is managed independently from Trafigura and has been established to purchase insured prepayments from Trafigura.
Maximilian Tomei, chief executive officer of Galena Asset Management, said: “Our Singapore-based team has structured an innovative finance vehicle that introduces commodity linked prepayments as a new asset class for investors.
“Our intention is to create a series of similar funds at a time when the business environment is rapidly evolving for the commodity trading industry.
The prepayments are used to organise up-front loans for commodity producing counterparties and are repaid over time in commodity shipments. Trafigura has now become one of the leading companies engaged in structured trade finance, with total prepayments for commodities including oil, metals and minerals now exceeding $5 billion per annum.
For more information visit www.galena-invest.com
