Case Spotlight | What We’re Working On This Week
The Client
A UK-registered petrol commodities trader seeking to expand into a key international growth market through a newly established entity in Kenya.
The Challenge
The client had identified a significant opportunity to increase trading activity in the region but faced balance sheet constraints. Historically, trades had been funded using the company’s own capital, limiting the size and frequency of transactions and, ultimately, its ability to scale.
To support its expansion plans, the client had already secured $10 million of junior investor capital from Switzerland. However, additional funding was required to provide the scale and flexibility needed to participate in larger transactions and increase the potential profitability of its trading activity.
The challenge was not simply accessing further capital. It was identifying a banking partner capable of understanding the client’s business model, international structure, local market opportunity and plans for growth.
Our Approach
Using our banking relationships across the UK and Channel Islands, we engaged with a bank with a significant presence in the client’s target market and connected directly with its lending team in the relevant local jurisdiction.
The process involved detailed analysis of the underlying business and proposed expansion strategy, including financial projections, local licensing arrangements and counterparty agreements.
By presenting the wider commercial rationale alongside the client’s existing capital position and growth plans, we helped provide the bank with a clear and coherent picture of the opportunity and the proposed trading model.
The Solution
Following its assessment, the bank is extending a trade finance credit facility, providing the client with the flexibility to draw capital on a trade-by-trade basis.
Combined with the $10 million of junior investor capital already secured, the facility creates a more scalable funding structure, enabling the business to access greater levels of capital as individual trading opportunities arise rather than relying solely on its own balance sheet.
The Outcome
The resulting structure provides the client with greater capacity to pursue larger trades while retaining flexibility over how and when capital is deployed.
This case demonstrates the importance of combining the right international banking relationships with a detailed understanding of the underlying commercial strategy. Rather than approaching the requirement as a standalone funding exercise, the objective was to establish a structure capable of supporting the client’s next stage of growth.
For businesses operating across jurisdictions, access to capital is only part of the equation. Structuring that capital appropriately can provide the flexibility and capacity required to pursue opportunities as they arise, without placing unnecessary constraints on the existing balance sheet.
This Case Spotlight is illustrative. Details may have been anonymised, simplified or altered where necessary and should not be taken as describing the complete circumstances of any individual client or transaction.
This content is for general information only and does not constitute personal financial, investment, legal or tax advice. Valuations, lending values, pricing, fees, leverage and security requirements are indicative only and remain subject to lender assessment, independent valuation, asset composition, due diligence, credit approval and market conditions.
