Port of StocktonCimbriaPort of South LouisianaTBA GroupTelestackGeneva Dry
  • Geneva Dry
  • Cimbria
  • Port of Stockton
  • Sailors Society
  • Van Aalst
  • Vigan

Galena fund: first for commodities industry

Galena fund: first for commodities industry

(Posted on 01/07/21)

Galena Asset Management, a wholly-owned investment subsidiary of Trafigura, one of the world’s leading independent commodity trading companies, has successfully completed the first funding within a USD155 million, closed-ended three-year Committed Prepayment Portfolio Fund. The Galena Commodity Credit Fund, a first of its kind in the commodities industry, was raised with private equity and senior debt provided by a syndicate of core banks for the Group - Lloyds Bank, Sumitomo Mitsui Banking Corporation ("SMBC") and SuMi TRUST Bank.

Prepayments are used to organise up-front loans for commodity producing counterparties and are repaid over time in commodity shipments. Trafigura has become one of the leading companies engaged in structured trade finance, with total prepayments for commodities including oil, metals and minerals now exceeding USD5 billion per annum.

The Galena Fund is managed independently from Trafigura and has been established to purchase insured prepayments from Trafigura, thus increasing Trafigura’s ability to agree further prepayments with producing counterparties.

“Our Singapore-based team has structured an innovative finance vehicle that introduces commodity linked prepayments as a new asset class for investors,” said Maximilian Tomei, Chief Executive Officer for Galena Asset Management. “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.”

“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,” said Chin Hwee Tan, CEO Asia Pacific for Trafigura and Monetary Authority of Singapore Financial Centre Advisory Panel Committee Member.

Trafigura has set out to explain how resource-backed loans work, for example, through the publication of "Prepayments Demystified" in 2020. In accordance with its commitment to the Extractive Industries Transparency Initiative (EITI), Trafigura discloses prepayments made by its majority-owned companies, including funds managed by Galena Asset Management, to state-owned entities through its annual Payments to Governments report here.

In addition to being Lenders, Lloyds Bank, SMBC and SuMi TRUST Bank acted as Mandated Lead Arrangers and SMBC also acted as Agent, Security Agent and Account Bank.

Latest News

Metso invests in China to strengthen screen offering for mining and aggregates

(Posted on 15/02/25)

Metso is investing in the expansion of its screening solutions in China. Metso is a frontrunner in sustainable... Read more


Cemex announces CEO transition

(Posted on 13/02/25)

Cemex has announced that its CEO, Fernando A. González, has decided to retire after a successful... Read more


EUROFER: Trump’s tariffs will exacerbate already dire market environment

(Posted on 11/02/25)

European Steel Association (EUROFER) President, Dr. Henrik Adam has released a statement on U.S. steel... Read more


Canadian steel producers concern at Trump’s tariff threat

(Posted on 10/02/25)

Canadian Steel Producers Association President and CEO, Catherine Cobden has released the following... Read more


Cargill moves to take full control of SJC Bionergia

(Posted on 07/02/25)

Cargill continues to advance its growth strategy in the Brazilian market and reinforces its investment... Read more


Anglo American completes sale of minority interest in Jellinbah for A$1.6 billion

(Posted on 31/01/25)

Anglo American plc has announced the completion of the sale of its 33.3% minority interest in Jellinbah... Read more


Rivera now MD of Cremer Erzkontor Mexico

(Posted on 30/01/25)

Rafael Rivera has been appointed the new Country Manager Mexico of the end-to-end raw materials supplier... Read more


Rio Tinto provides Iron Ore update following Tropical Cyclone Sean

(Posted on 24/01/25)

Tropical Cyclone Sean delivered record rain along parts of the Pilbara coastline of Western Australia... Read more


Rio Tinto shows greater consistency across key operations

(Posted on 19/01/25)

Rio Tinto has released fourth quarter production results. Chief Executive Jakob Stausholm said: &ldquo... Read more


Trafigura publishes 2024 Sustainability Report

(Posted on 19/01/25)

Trafigura Group Pte Ltd. has published its 2024 Sustainability Report, highlighting the Group’... Read more


ViganSailors SocietyBühler GmbHTMS Awards 2023Van Aalst
  • TMS Awards 2023
  • Bühler GmbH

Subscribe to our newsletter

Keep up to date with the latest global news in bulk cargo handling and shipping