Key facts:
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Glencore’s $2.55B oil and gas trade securitization is one of the largest oil and gas trade receivables transactions ever executed.
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Powering the transaction, the highly scaled FIS Supply Chain Finance Platform enables real-time monitoring and transparent receivables reporting across multiple jurisdictions.
Global financial technology leader FIS® announced that its Supply Chain Finance Platform (formerly Demica) was selected by Glencore PLC to support the inaugural trade receivables securitization program for its oil and gas commodity business.
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Trade receivables securitization is a specialized form of structured trade finance enabling corporates to monetize large pools of receivables, thereby unlocking liquidity. Glencore’s $2.55B facility, backed by a consortium of six leading financial institutions, marks a significant milestone in the evolution of structured trade finance for the commodities sector.
Glencore PLC, one of the world’s largest diversified natural resources companies and a leading marketer and producer of commodities across metals, minerals and energy products, selected the FIS Supply Chain Finance Platform to provide the technology infrastructure, reporting capabilities and operational support for this complex, multi-jurisdictional transaction.
The FIS Supply Chain Finance Platform provides the flexibility and functionality needed to deliver working capital solutions at scale. Deal set up, portfolio monitoring and reporting, securely hosted on Microsoft Azure, support programs across industries and client sizes.
The platform delivers:
- Seamless onboarding capabilities that enable deployment across multiple counterparties and jurisdictions
- Real-time monitoring and reporting providing comprehensive visibility into receivables performance for all stakeholders
- Automated regulatory reporting that helps ensure adherence to regulatory reporting requirements throughout the facility lifecycle
- Scalable infrastructure supporting the processing and management of a diversified portfolio of global trade receivables
“The size and scale of Glencore’s oil and gas trade securitization exemplifies how the FIS Supply Chain Finance Platform enables sophisticated financial structures that optimize working capital for global enterprises,” said Steve Sabin, SVP, Lending at FIS. “Our technology and expertise enable our clients to execute complex, cross-border receivables programs with confidence and transparency. By optimizing the movement of capital across the money lifecycle, we are helping businesses like Glencore to unlock money at work through liquidity and drive growth in global markets.”
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