Structured Commodity Finance (Summary)
We work with clients to arrange the funding and monetization of fungible inventories and cargoes of both exchange-traded and non-exchange deliverable, physical commodities.
Our services include:
- Structured and transactional trade finance
- Physical repo as a form of inventory financing
- Risk mitigation management
Funding sources for these commercial transactions include private equity, hedge funds, and traditional international trade finance institutions.
Oahu Capital deals specifically with exchange listed fungible commodities in the energy and agricultural sectors.
We work with a wide range of clients from local dairy, grain and beef producers, importers, exporters to manufacturers, refineries, airlines, fleet operators, ingredient and feed processors.
Physical Commodity Repo
It's frustrating when your business needs cash for operations which is tied in raw material or physical inventory that won't be used for another 60 - 90 days.
Many businesses are faced with challenges in operational cash flow due to assets held in storage as inventory.
Examples range from raw inputs for an AFO (animal feed operation) to bunker fuel for a shipyard, diesel fuel for a fleet of delivery vehicles or chemical feedstock on petrochem production.
Having to order physical supplies in advance to account for shipping lead times or timing purchases for favorable input costs in volatile price environments is sometimes necessary. Unfortunately, these decisions could tie up cash for other aspects of operating.