From the world of export and commodity finance!

Welcome back to TXF's newsletter! As we enter a new year, we'd love to hear your thoughts on the newsletter - let us know what you find most useful and if there is anything you would like to see included in the future! Comment or message us with your feedback.

Scroll down for the latest feature, news, and data analysis. Check out our spotlight deal of the month and reminisce on the last 12 months with TXF's highlights of 2023 video and top trends.

Schedule a demo with us today and discover how TXF's data platform can enhance your business growth.

20 minutes with Daan van Alem, Northland Power

TXF and Proximo speak to Daan van Alem, senior project finance manager at Northland Power, about the intricate financings for Northland's Baltic Power and Hai Long offshore wind farms, as well as the company's burgeoning project pipeline.

Listen to the podcast here

Latest news in export and commodity finance:

• Turkish Airlines closed two ECA-backed loans – both part of one larger multilease agreement deal signed throughout 2023 – to finance the procurement of aircrafts on 23 December last year.
• Karoon Energy has completed a $720 million acquisition, marking its entry into the Gulf of Mexico. The deal involves acquiring a 30% interest in the Who Dat and Dome Patrol oil and gas fields, along with related infrastructure, from LLOG Exploration Offshore and LLOG Omega Holdings.
• Further information has come to light regarding the project financing of the SunZia wind and transmission project in New Mexico and the western US.
• On 15 December 2023, the Senegalese Ministry of Economy, Planning and Cooperation (MEPC) closed a €155.6 million ($170 million) ECA-backed loan to finance construction of 23 vocational training centres across 18 regions of the West African country.

Don't miss TXF's highlights of 2023

As we start a new year, it's an opportunity for us to reflect on some of the top trends we've seen across the markets and event highlights from TXF in the last 12 months, all in this neat little video!

Plus, check out some of the key trends of the year chosen by our team, from adapting to OECD reforms to plugging the funding gap and championing collaboration, to geopolitical risk and trader transparency. Looking ahead to 2024 and beyond, what trends are poised to endure?

Export finance top trends of 2023

Commodity finance top trends of 2023

Spotlight deal of the month: Gunvor closes €400m SACE-backed loan

Gunvor Group has closed a EUR 400 million, 5-year term loan guaranteed by SACE, the Italian Export Credit Agency. The goal of the Facility is to support Italian industry by securing natural gas and liquefied natural gas supplies while promoting the export of Italy’s goods and services.

Borrower: Gunvor

Industry: Oil & gas/Oil - Trading

Volume: $432.22m

Structure: ECA-backed supplier credit

Financial close: 14/12/2023

Full tranche and company details can be found here

Data snapshot of the month: Dynamics of commodity trade finance

Commodity trade finance volumes totalled $76.3 billion in 2023 – a significant decrease compared with the past five years. This figure marks nearly a third of the total pre-pandemic debt volume captured in 2019 ($202.2 billion). The year-on-year decrease in volumes can be explained by the growing risk perception of lenders in the wake of the pandemic, as well as the exit and retreat of several active commodity trade banks from the market. Debt volumes bounced around the $150 billion mark in 2022 and 2021, nearly double the total loan market of last year.

The record profits of trading houses amid the high energy price environment has also added to depressed debt volumes: as fundraising needs can lower when the health of traders’ balance sheets increase. But conversely, as commodity prices balloon, so do smaller traders’ fundraising needs – as they operate on razor thin margins. And given the heightened flight to credit quality by banks, a trend preceding the pandemic, smaller traders have further struggled to secure credit lines from international banks.

TXF Intelligence has a database of over 11,500 deals in the export, commodity, and trade finance market. With various dashboards to choose from, it provides a full picture of headline statistics and detailed statistics for any industry or sub-industry. If you wish to see a specific sector breakdown or delve further into the data, book a demo with us to explore the full extent of our platform's functionality.

Book a demo with us today

We'll leave you with the Song of the Month: Down to the Waterline by the Dire Straits. Follow our Spotify playlist to listen.

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Best,

Team TXF