Specialized Trade Solutions: trade financing & commodity supply chain

Each and every day, companies benefit from BNP Paribas’ experience and expertise to develop their business. Specialized Trade Solutions (STS) product line is dedicated to working capital and trade financing solutions within the commodity supply chain.

Commodity players are not only limited to producers, traders and their affiliate business partners. Many other corporates – which are using commodities in their industrial process – are connected to the commodity value chain. They are buying, consuming, transforming commodities and delivering semifinished or finished products to the market.

For instance a large, multi-national corporation in the food industry, manufacturing and marketing large volumes of food products under its proper own brand might consider itself as a pure food retailer.

However, it is also a large commodity player buying on a regular basis large amounts of wheat to manufacture biscuits, cookies and crackers. This example shows that commodity players are more widespread than commonly believed.

Even if their positioning along the commodities value chain may vary, their needs and concerns are quite often similar: securing and financing their sourcing, managing and anticipating their cost, and all the while optimizing their working capital metrics. Furthermore, corporates using commodities face specific risks and show some common features. Commodity players are challenged at every level of the supply chain and BNP Paribas Specialised Trade Solutions offers them dedicated solutions to address their needs and navigate safely through the commodity value chain:

BNP Paribas Specialized Trade Solutions offers four main working capital financing solutions:

• Transactional financing: financing of the entire commodity supply chain supported by collateral, and a specific set of transaction documents, offered to a wide range of small to mid-size companies.
• Inventory financing: financing of inventories implying a transfer of property title of the commodities to the Bank, for a given period of time. This product is available for companies holding significant levels of inventory.
• Guarantee: financial instruments issued by the bank to assist corporates in actively managing their counterparties’ risk, with a non-payment or non-performance risk.
• Borrowing base: short to medium term working capital financing solutions secured by inventories and receivables, offered to medium to large companies.

BNP Paribas Specialized Trade Solutions also provides specific services related to commodities, such as:

• Integrated hedging solutions,
• Documentary credit expertise and documentary L/Cs confirmation,
• Syndication, agency and advisory.

Specialized Trade Solutions addresses Working Capital and Trade Finance needs at every step of the Commodity value chain. The 200+ experts of Specialized Trade Solutions, based in Paris and Geneva, leverage on their deep sector knowledge – Agribusiness, Metals & Mining and Energy – to propose strong added value to Group’s corporate clients in Europe, guaranteeing the adapted level of credit risk management and using a best-in-class compliance control set-up.

“With Specialized Trade Solutions, BNP Paribas puts its unique expertise in the commodities business at the disposal of its corporate clients across all sectors. As their needs are becoming more specific in a demanding environment, we are strongly committed to bringing them adapted solutions along their production cycle” commented Emmanuel Rogy, Head of Energy & Commodities Finance Europe.

About BNP Paribas (Suisse) SA

With nearly 1,500 employees and a presence in Geneva, Zurich, Basel and Lugano, BNP Paribas (Suisse) SA is a leading European bank in Switzerland for corporates, institutions and private clients. Active in Switzerland since 1872, we strive for long term development with a clear strategy for each business line: To be the preferred partner of Corporates and Institutions, supporting them in their development both in Europe and beyond with our “One Bank for Corporates” initiative.

To be a leader in Wealth Management in terms of expertise and service for private clients and entrepreneurs.

To be a reference for commodity finance thanks to our “Specialized Trade Solutions” dedicated to historical clients who share our values and to Group’s Corporate clients in Europe.

The BNP Paribas Group integrated model enables us to offer our clients the financial stability of a leading bank in Europe with international reach and its wide range of products and investment.

By developing long-term close working relationships with our clients, we aspire to contribute to sustainable, responsible growth.