A milestone for the Trade Finance industry, further enabling trade for SMEs
SINGAPORE, Nov. 22, 2021 /PRNewswire/ -- TradeFlow Capital Management (TradeFlow) is pleased to announce the issue of its first tranche of investment grade Senior Notes via EUROCLEAR. Capital raised will strengthen TradeFlow's international commodity supply chain investment strategy which enables trade for SMEs worldwide.
The Investment Grade Senior Notes will have a fixed term and a fixed yield, and will support enhanced returns for equity holders as part of the core development strategy of TradeFlow.
Funds raised by the Senior Note issuance shall be used to invest in the import/export commodity transactions of SMEs in the commodities trading industry by TradeFlow, helping to narrow the growing trade finance gap, made worse by the COVID-19 pandemic, on current estimates in excess of USD1.7Tn (ADB).
Says Dr Tom James, CEO and CIO of TradeFlow: "We're very pleased to be able to offer these investment grade fixed income products as part of our wider strategies to support investors wishing to gain entry into the low-risk Trade Asset Class space and in turn support SMEs. It is well-known that the trade finance asset class offers strong portfolio diversification away from financial markets and with strong yields."
Adds John Collis, CRO of TradeFlow: "TradeFlow Senior Notes are Investment Grade Senior Notes. They give investment grade returns and enhance the returns for all equity holders, offering investors another option able to take advantage of our Fintech that has helped us to generate sustainably strong returns over the years."
TradeFlow Capital Management (TradeFlow) is the world's first Fintech-powered commodity trade enabler focused on SMEs. TradeFlow consists of a diverse team of experts with the focused mission of addressing the increasing trade finance gap faced by global SMEs operating as producers/traders/end-users in the bulk commodity trading space. By performing an enabling role in international trade and globalization, TradeFlow creates growth opportunities for businesses and economies.
TradeFlow transforms the risk associated with SME company import/export Commodity transactions that form the lifeblood of modern economies into Investment Grade products for Banks and Investors. It achieves this by using a proprietary Risk Transformation Engine (RTE) combined with the latest Digitalisation technology including Artificial Intelligence to power its innovative non-credit, non-lending model. TradeFlow's RTE architecture provides the added advantage of superior risk-adjusted returns and capital preservation for investors and is highly complementary to traditional trade finance lending institutions like Banks.
To date, TradeFlow has successfully invested in more than US$750mn of physical commodity trade through 800+ transactions across 15+ countries and 25+ commodity types, with more than 800 SME counterpart entities KYC reviewed. As part of its unique business model, The TradeFlow Funds*, advised by TradeFlow, were conceived in 2016 and launched in 2018.
To facilitate Environmental, Social and Corporate Governance (ESG) objectives that support the United Nations Sustainable Development Goals (UN SDGs), TradeFlow has implemented its Climate Impact Strategy (CIS) leveraging on its unique trade investment model since December 2020.
In July 2021, Tradeflow was acquired by Supply@ME Capital plc, the innovative fintech platform that provides the Inventory Monetisation© service to manufacturing and trading companies, and which is listed on the London Stock Exchange. The combined strengths of both entities further TradeFlow's ability to fulfil its mission of enabling trade for SMEs worldwide, and in doing so, support the UN SDGs.
TradeFlow is a Partner of the International Chamber of Commerce (ICC) to mobilise capital and improve trade finance access for small and medium sized enterprises (SMEs) worldwide through the "'ICC Trade Now" and "ICC Digital Trade Standards Initiative" platforms.
We are a FinTech Certified Company (SFA), a Corporate Member of the Singapore FinTech Association (SFA), a Member of the Alternative Investment Management Association (AIMA), a Member of the Bankers Association for Finance and Trade (BAFT), an Associate Member of EuroCham Singapore, and a Gold Member of the South African Chamber of Commerce.
* No.1 SME-focused trade finance fund in annual net returns to investors in 2020, as reported by Preqin Alternative Investment Database records
SOURCE TradeFlow Capital Management