Bond Issuance Programme Listed in Luxembourg and authorised by the - - PowerPoint PPT Presentation
Inaugural 1 Year Bond Issuance 5.00% in USD 4.50% in GBP 3.50% in EUR Expected Rating : A+ (ARC Ratings) from a USD500mio Bond Issuance Programme Listed in Luxembourg and authorised by the CSSF (Luxembourg Regulator) 1 Transaction
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Issuer : Synthesis Trade Finance I SA Status of the Notes : Senior Secured Notes issued from the Synthesis Trade Finance USD500,000,000 MTN Programme Purpose of the Note Issue : The Borrower will purchase a diversified portfolio of trade finance loans that will each be backed by collateral, letters of credit or credit insurance, as detailed in the Programme Credit Rating : ARC Ratings : A+ (indicative) Issue Size : USD [50-75] mio across any or all of USD, EUR and GBP Marketing Period : [9th] November 2016—[28]th November 2016 Issue Date : [5]th December 2016 Maturity Date : [5]th December 2017 Issue Price : 100.000% Denominations : USD2,000 / EUR2,000 / GBP2,000 Interest Rate : USD : 5.00% ; EUR 3.50% ; GBP : 4.50% Listing and Admission to Trading : Application will be made by the Issuer for the Notes to be admitted to trading on the Euro MTF Market of the Luxembourg Stock Exchange Minimum Subscription : USD2,000 / EUR1,000 / GBP2,000 ISIN : See separate termsheets Issuing and Paying Agent : Citibank N.A., London Branch Auditor : PricewaterhouseCoopers Societe Cooperative Security and Note Trustee : Capita Trust Company Ltd Legal Counsel for the Borrower : Holman Fenwick Willan Settlement Agent : Citibank N.A., London Branch Settlement : Euroclear/Clearstream Governing Law : English Business Days : [London, New York, Target]
Synthesis Management Limited receives MIFID Licence from the UK‘s FCA
Synthesis Trade Finance S.A. Bond Issuance Program receives formal approval from Luxembourg‘s CSSF
Synthesis Trade Finance bonds are marketed
Expected size of the issuance will be announced and investors will be asked to place firm orders for the bonds
Final size of the bond issue is determined and published and investors will receive their allocations from their authorised distributor
Final Timeline for Bond Issuance by Synthesis Trade Finance I SA is agreed
Investors provide full settlement instructions to the Authorised Distributor
The lender generally has a charge
well as access to a Letter of Credit or Credit Insurance
Trade finance loans are typically 30- 60 days so there is a clear exit path for the lender. It also allows lenders to quickly reduce exposure to borrowers, sectors and geographies
Historically, structured trade finance loans have very low default rates and very strong recovery rates, thanks to the strong asset security
Typically trade finance loans have very strong returns due to the short
deployed, this can be converted to strong annualised returns
Despite global economic uncertainty, international trade continues to grow SMEs continue to globalise, moving their goods in greater size, across greater distances However, as deliveries take longer, SMEs turn to trade finance to bridge the cashflow gap between production and payment According to the International Chamber of Commerce Report in 2011, default rates in trade finance stood at around 0.02%, better than investment grade bonds* WTO Member Exports per year
SME share of that trade
Of the SME share requires trade finance
Is the historical default rate
* http://iccreport2015
Product Total Exposure ($mio) Total Defaulted Exposure ($mio) Exposure-weighted Default Rate Transaction Default Rate Export L/C 988,434 235 0.02% 0.01% Import L/C 1,656,528 1,210 0.07% 0.08% Performance Guarantees 1,023,561 1,154 0.11% 0.17% Loans for Import/Export 3,154,407 5,323 0.17% 0.22%
Pre-production Finance Inland Inventory Finance Export port Inventory Finance Marine Transport Finance Processing Finance Receivable Discounting Transit Finance Transit Finance Transit Finance Transit Finance Import port Inventory Finance Cash in Advance Letter of Credit Cash against Document Open Account Open Account Cash against Document Letter of Credit Cash in Advance
Synthesis chooses who to lend to based on these criteria
MARKET KNOWLEDGE
With buoyant consumption of oil products around the world and long delivery times, there is continual demand for funding
Soft commodities are often seasonal which makes it harder for small companies to raise finance. Using our strong market knowledge we can seek out mutualy beneficial relationships
Metals and polymers are businesses that
to remain well invested by continually moving money from one contract to the next
A proportion of our portfolio may be used to finance non- commodities as long as the margins are strong and the products are generic and liquid
Having worked in the financial industry for almost 30 years, David has built up significant and broad experience in Commodity Risk Management, Commodity Trading and Financing of
positions at investment banks, including Head of Commodities at ABN AMRO Bank NV, Co-Global Head
CEO of a London Stock Exchange listed trading company. David has extensive knowledge of market and credit risk management including risk mitigation products in physical, on exchange and OTC products.
Frances is a highly experienced structured trade financier with comprehensive knowledge of and extensive practical experience in providing finance within the international trade sector. Frances’ expertise encompasses traditional trade finance, factoring and forfaiting in the export markets. This experience is complemented by a strong legal background and 25 years’ exposure to the international banking and finance markets, having held senior positions with UK-based firms London Forfeiting Company, BCI Soditic Trade Finance Company, Fairfax Gerrard and Trade Finance Partners Limited, latterly as Structured Finance Director.
Andy has over 16 years of experience in debt capital markets, all gained working in major global investment
Citigroup with a focus on raising short term finance for companies via the commercial paper market. Subsequently he worked in the note syndication teams at RBC Capital Markets and Mizuho International, advising banks, governments and corporates on issuing notes across a range of currencies for periods of anything from one year to fifty years, and in sizes ranging into the billions of pounds sterling. Andy graduated from Cambridge University with an MA (Hons) in Law
Spyros has over 17 years of experience in alternative investments. He began his career in Private Banking, first with Citigroup in London and Geneva, where he was the key contributor to the development of both the Spanish and Greek Wealth Management Desks, and then with Société Générale in Athens, where he was instrumental to the expansion of the Greek Private Banking division. Spyros resigned from Private Banking in 2006 to set up an asset management company for Deloitte, before returning to London as Director
June 2009. His clients came through unscathed, and indeed profited, from the crises of 2000-02 and 2007-
Management Certificate of the CFASociety of the UK.
Marc started his career as an auditor
moved on to Nordea Bank to assist with Compliance, Anti-Money Laundering and Legislation issues and set up controls and processes to ensure efficient monitoring. Later, as Board Member and Conducting Officer with Glitnir Bank, he was instrumental in setting up the investment fund arm of the bank. Marc subsequently set up his own advisory firm, LEVeL Advisory, providing services to the asset management and banking sector. Marc holds a Masters Degree in Finance and a Masters Degree in Control from HEC. He is a Certified Director of the Luxembourg Institute of Administrators (ILA), and a certified “Senior Fund Specialist” and “Compliance Officer” of the Institut de Formation Bancaire in Luxembourg.
Manuel is a CSSF Authorized Director in the investment fund sector, acting as executive or non-executive
the Finance & Administration Management activities of several industrial companies, both at subsidiary and mother company level, where his primary focus was to ensure the existence and the communication
Manuel gained his first experience at PricewaterhouseCoopers, Liege, where he was in charge of the audit of a number of major industrial
Commercial Engineering from HEC in Belgium.
This communication is being furnished solely on a confidential basis to the recipient. This communication is directed at persons having professional experience in matters related to investments and any investment or investment activity to which this communication relates is available only to such persons or will be engaged in only with such persons (or other persons to whom such investment can lawfully be made available or with whom such investment activity can lawfully be engaged). If you do not have professional experience in matters relating to investments you should not rely on this communication. Neither this Communication nor any of the associated documents may be reproduced, re-transmitted or further distributed to any other person or published, in whole or in part, for any other purpose than that stated above. The information in this document, which is in draft form and incomplete, is subject to updating, completion, revision, further verification and/or amendment. In particular, the documents refer to certain events having occurred which have not yet occurred at the date these documents are made available, but which are expected to occur prior to the publication of an approved prospectus in final form. Recipients of this Communication (or any of the associated documents) who are considering purchasing or subscribing for Notes in any of the issuers are reminded that any such purchase or subscription must be made only on the basis of information contained in the approved prospectus its final form, which may be different from the information contained in this document. Notes may not at this time be offered by any of the issuers directly to the public. Neither this Communication nor any of the attached documents constitutes an offer of Notes. By accepting delivery of this Communication, you agree to keep it and its content (including the attached documents) confidential, and not copy, publish, distribute, pass on or disclose any of it except with the prior written consent of Synthesis. To the extent permitted by applicable law and regulation, Synthesis Trade Finance S.A. and its affiliated companies expressly disclaims and excludes any and all liability that may be based on this communication and the attached documents, any errors in it/them or omissions from it/them.