Stenn International Ltd. (“Stenn”), a provider of trade financing solutions across global markets, today announced the closing of a senior financing facility with Natixis S.A. (“Natixis”). With a targeted size of up to $500 million, the facility will provide additional capacity for Stenn to deliver working capital solutions to suppliers and buyers engaged in international trade.
The Natixis facility, which is supported by trade finance insurance from global insurer AIG, augments the $300 million platform launched by Stenn and Crayhill Capital Management LP (“Crayhill”) in 2016.
Crayhill, a credit-focused alternative asset management firm, played an active role in securing the Natixis facility and continues to serve as a capital partner and advisor to Stenn.
The new senior financing allows Stenn to further expand its funding solutions to additional customers and geographic markets currently underserved by traditional bank financing. Stenn has seen a rising demand for flexible short-term financing from both suppliers and buyers who are engaged in international trade.
Stenn’s programs provide cash-flow benefits to both parties in a cross-border trade transaction. Suppliers are paid immediately when goods are shipped, while buyers are able to pay at a later date. Stenn finances companies of all sizes across a wide range of industry sectors. Current clients include global leaders in retail, wholesale, manufacturing and industrial technology.
“In light of the increasing globalisation of supply chains, Basel III restrictions on trade finance, and global shifts in tariff regulations, banks are being compelled to limit their participation in some trade finance segments, such as trade between emerging and developed economies,” said Greg Karpovsky and Andrey Polevoy, Stenn’s Co-Founders. “This creates a gap in the market where Stenn, with the support of Crayhill, Natixis and AIG, is well-positioned to become a global leader.”
“Stenn provides working capital to all types of companies around the world, from large corporates to mid-size and smaller companies that don’t have adequate access to cross-border trade finance,” said Kerstin C. Braun, President of Stenn. “With this new facility in place, we are more prepared than ever to fill these funding gaps.”
“This senior facility allows Stenn to continue its global leadership in the underserved market for international trade finance,” said Josh Eaton, Managing Partner of Crayhill. “With its experienced team, end-to-end systems, risk management controls, and this expanding capital program, Stenn is well-positioned to capture market share and become the first choice for financing among suppliers of consumer and industrial goods.”
Emmanuel Issanchou, Global Head of Structured Credit & Solutions at Natixis added: “We were delighted to work with Stenn, Crayhill and AIG on this transaction, which is consistent with our strategy of financing the growing disintermediation of the economy. This unique multi-jurisdiction securitization of cross-border trade receivables is designed to support Stenn’s growth by meeting its specific business needs. We hope that it will mark the start of a flourishing partnership between Natixis and Stenn.”
“We are pleased to provide a specialist trade finance insurance solution to support the Natixis senior facility with Basel III credit risk mitigation for Natixis as funder, and an efficient first loss structure with comprehensive eligibility criteria for Stenn, allowing it to expand its funding for short-term trade,” said Oliver Lambert, Director AIG Trade Finance Ltd.
To serve the global market, Stenn has added senior leadership with experience in trade finance, credit and business expansion, invested in technology that allows it to quickly and effectively manage transactions while controlling risk, and established a presence in major economies around the globe to better serve buyers and sellers.
Oil set for steady gains as economies shake off pandemic blues – Reuters poll
By Sumita Layek and Bharat Gautam
(Reuters) – Oil prices will stage a steady recovery this year as vaccines reach more people and speed an economic revival, with further impetus coming from stimulus and output discipline by top crude producers, a Reuters poll showed on Friday.
The survey of 55 participants forecast Brent crude would average $59.07 per barrel in 2021, up from last month’s $54.47 forecast.
Brent has averaged around $58.80 so far this year.
“Travel and leisure activity look set to catch up to buoyant manufacturing activity due to the mix of stimulus, confidence, vaccines, and more targeted pandemic measures,” said Norbert Ruecker of Julius Baer.
“Against these demand dynamics, the supply side is unlikely to catch up on time, leaving the oil market in tightening mode for months to come.”
Of the 41 respondents who participated in both the February and January polls, 32 raised their forecasts.
Most analysts said the Organization of Petroleum Exporting Countries and allies (OPEC+) may ease current output curbs when they meet on March 4, but would still agree to maintain supply discipline.
“With OPEC+ endeavouring to keep global oil production below demand, inventories should continue falling this year and allow prices to rise further,” said UBS analyst Giovanni Staunovo.
Oil demand was seen growing by 5-7 million barrels per day in 2021, as per the poll.
However, experts said any deterioration in the COVID-19 situation and the possible lifting of U.S. sanctions on Iran could hold back oil’s recovery.
The poll forecast U.S. crude to average $55.93 per barrel in 2021 versus January’s $51.42 consensus.
Analysts expect U.S. production to rise moderately this year, although new measures from U.S. President Joe Biden to tame the oil sector could curb output in the long run.
“A structural shift away from fossil fuels” may prevent oil from returning to the highs of previous decades, said Economist Intelligence Unit analyst Cailin Birch.
(Reporting by Sumita Layek and Bharat Govind Gautam in Bengaluru; Editing by Arpan Varghese, Noah Browning and Barbara Lewis)
Japan’s jobless rate seen up in January due to COVID-19 emergency measures – Reuters poll
TOKYO (Reuters) – Japan’s jobless rate is expected to have edged up in January as service industry businesses suffered renewed restrictions on movement to fight spread of the coronavirus in some areas, including Tokyo, a Reuters poll of economists showed on Friday.
While industrial production activity picked up in Japan, emergency curbs rolled out last month such as asking restaurants to close early and suspending the national travel campaign hurt the jobs market, analysts said.
The nation’s unemployment rate likely rose 3.0% in January, up from 2.9% in December, the poll of 15 economists found.
The jobs-to-applicants ratio, a gauge of the availability of jobs, was seen at 1.06 in January, unchanged from December, but stayed near September’s seven-year low of 1.03, the poll showed.
“As the impact from the coronavirus pandemic prolongs, it is hard for firms, especially the service sector, to expect their business profits to improve,” said Yusuke Shimoda, senior economist at Japan Research Institute.
“So, their willingness to hire employees appear to be subdued and it is difficult to see the jobs market recovering soon.”
Some analysts also said the government’s steps to support employment and existing labour shortages will likely prevent the jobless rate from worsening sharply.
The government will announce the labour market data at 8:30 a.m. Japan time on Tuesday (2330 GMT Monday).
Analysts expect the economy to contract in the current quarter due to the emergency measures to counter the spread of the disease.
(Reporting by Kaori Kaneko; Editing by Simon Cameron-Moore)
China’s economy could grow 8-9% this year from low base in 2020 – central bank adviser
BEIJING (Reuters) – China’s gross domestic product (GDP) could expand 8-9% in 2021 as it continues to rebound from the COVID-19 pandemic, Liu Shijin, a policy adviser to the People’s Bank of China, said on Friday.
This speed of recovery would not mean China has returned to a “high-growth” period, said Liu, as it would be from a low base in 2020, when China’s economy grew 2.3%.
Analysts from HSBC this week forecast that China would grow 8.5% this year, leading the global economic recovery from the pandemic.
If 2020 and 2021’s average GDP growth is around 5%, this would be a “not bad” outcome, said Liu, speaking at an online conference.
China is set to release a government work report on March 5 which typically includes a GDP growth target for the year.
Last year’s report did not include one due to uncertainties caused by the coronavirus. Reuters previously reported that 2021’s report will also not set a target.
(Reporting by Gabriel Crossley and Muyu Xu; Editing by Sam Holmes and Ana Nicolaci da Costa)
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