Strategy

Strategy

We select first-class and well-established companies only, a portfolio of borrowers mainly based in Switzerland, in Europe and in Australia.

The credit facilities granted with the assistance of cta-Finance are always complementary to the other banking facilities, granted simultaneously and for longer periods of time than cta-Finance facilities.

The transactions we finance are short-term only, with a tenor of maximum 90 days and transactions are not linked to the emerging markets.

Investment criteria

1

Small credit line

the credit facilities granted by cta-Finance are small; we intend to be the least exposed creditor within the group of creditors the borrower is dealing with. We thus work under the umbrella of the global credit lines granted; as a result, this makes us able to react and to adapt our exposures efficiently.

2

Short-term financing

The financings we take in our position is short-term financing with a tenor of max 90 days. It involves more work but  has a direct positive risk impact.

3

Transactional approach

our credit facilities are uncommitted and we always have the right to refuse to finance a transaction. Our transactions are self-liquidating and offer full recourse to the pledged collaterals, for each transaction independently.

4

A valid and full recourse

Our borrowers are well-capitalized; we have a full recourse to the borrower or to his guarantor; we always maintain a reasonable ratio between the credit line amount and the total equity value of our borrower: our credit lines do not exceed 50 % of the total equity value of the borrower or of his guarantor.

5

Borrowers active in metals

We focus on a portfolio of borrowers composed by trading companies mainly active in metals (ferrous and non-ferrous metals and all related products). 80% of our portfolio is composed of Swiss-based borrowers who have been known by cta-finance for many years. Metals like aluminium are endlessly recyclable and constitute the real economy.

6

Pledged collateral

We have the expertise to appraise the correct value of the collateral and the quality of all the counterparties of the transactions. We are expert in financing trading companies active in metals, we understand the market, the actors and the underlying risks.

Our strategy is to control our risks

We do not focus on the best investment returns. We believe in stability and in proximity, an environment where the control of the risks comes first; we know our clients and our clients’ clients.

GENERAL FACTS & FIGURES

COMMODITY TRADE FINANCE

Commodity Trade Finance reports reveal the low-risk nature of transactions that support global trade. They confirm that trade finance products continue to expose banks to low levels of credit risk.

(cf. ICC TRADE REGISTER REPORTS, last version 2019) CLICK HERE

A product which is uncorrelated to the financial market volatility.

We invest in real economy, in first priority goods.

The assets-based residual risk is represented by pledged collaterals.

CH is a key hub for trade finance, a center of excellence where most trade finance service providers and know-how meet. A large pool of potential clients, banks and talents in a stable and favourable environment.

As investor interest in trade finance continues to grow, trade finance is increasingly being recognized as a specific asset class to be invested by institutional investors.

Contact us

4, Pindou Street
Egkomi
2409 Nicosia - Cyprus
Tél +357 220 27 667
Fax +357 220 27 668
info@cta-finance.com