(Photo credit: TXF Geneva / Exile Group)
As part of the annual November Geneva Commodity Week, BGN CFO Yannick Luce provided some insights into the company’s evolving financing needs during a TXF conference panel.
During the discussion, Yannick noted that a key aspect “for fast-growing, mid-sized traders such as BGN” now and in the future is diversification. He added that “for us, it has become important to not only be involved in a diverse array of commodities, but also to be able to explore a variety of financing sources.”
The TFX conference brings together people from trading, finance, law and consultancy. The range of perspectives and knowledge enabled interesting and invigorating conversations.
Joining Yannick on the panel were Rebekah Fajemirokun, Head of Trade Finance, Eminent Energy Limited, and James Lowrey, Global Head – Research & Analysis STCF, Sumitomo Mitsui Banking Corporation (SMBC). It was moderated by John MacNamara, CEO, Carshalton Commodities.
While BGN has been focused on traditional commodity finance, other options such as solutions backed by export credit agencies (ECAs) are becoming increasingly appealing. According to the OECD, in 2021 alone, more than $40 billion in export credits were committed, insured, or guaranteed by member state ECAs.
BGN is a fast-growing, partnership-based trader covering oil and gas, petroleum products and other commodities, as well as carbon credits. Thanks to its strong partnership ethic, growth and diversification across multiple commodities classes, the company is assisting a number of countries with energy security of supply and the energy transition, as well as supporting the export needs of LMICs (low- and middle-income countries) and other nations.
Keeping pace with the trend setters in the commodity trading world means looking closely at the ECA market, as a complementary solution to the dozens of banking lines of finance that BGN already has in place, Yannick said.
The company is close to finalizing some ECA financing arrangements for some of the diverse body of energy and commodities trading that it undertakes.