Our experienced team of commodity finance experts service key clients such as miners, producers, refiners and processors - in particular, producers in Australia, refiners in China and commodities traders globally - delivering the following capabilities:
- Pre-payment and pre-export finance
- Repos - commodity purchase and sale agreements
- Borrowing base lending
- Reserve based lending
Pre-payment is a specific form of structured finance where Westpac looks to provide medium term financing against a commodity producer’s future output. Financing solutions are tailored to meet a customer’s requirement such as working capital needs, capital expenditure or acquisitions.
Commodity Repo solutions provide short-term working capital finance to Westpac’s customers via temporary bank-ownership of commodity assets―Westpac is able to purchase commodities at designated locations from customers and hold them for an agreed period of time. Commodity Repos are a useful alternative to debt-based inventory financing techniques providing advantages to Westpac’s customers in terms of financing cost, advance rate and management of risk.
Borrowing base / Reserve based lending
Borrowing Base Finance is a form of working capital finance secured against commodity inventories and receivables, where facility drawings are limited by the value of the collateral pool which is re-assessed regularly. Reserve Based Lending is a form of Borrowing Base Finance provided in respect of future production usually from oil and gas assets. These financing solutions can enable commodity market participants to service their working capital cycle as well as enhance their liquidity position.