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TRANSACTIONAL FINANCE FACILITIES
US$30 million
(Switzerland - Copper Concs Trader)
Lenders - European Investment Banks
Debt Arranger - Cofarco SAS
March 2012
Cofarco arranges metal trade finance lines and tripartite margin call agreements for Cilveden Trading AG.

Cliveden Trading AG is a trading and marketing company offering bespoke services to junior miners.

 

The company was registered in December 2011 and started operation in March 2012, after winning its first contract to source copper concentrates from Erdenet in Mongolia and sell them on to Chinese smelters. Cliveden Trading AG hired Cofarco to arrange the corresponding financing lines in this tight time span.

 

Under this mandate, Cofarco was responsible for:

 

  • Reviewing the projected physical trading business and advising on the relevant financing plan and strategy;
  • Identifying suitable lenders;
  • Preparing an information memorandum and provisional facility term sheet;
  • Presenting the company and the facility to select banks and London Metal Exchange brokers;
  • Advising on terms and conditions;
  • Coordinating legal documentation with the designated legal counsel, through to closing.

Three bilateral facilities were arranged as part of this mandate; they covered the financing of copper concentrates in inland transit across Mongolia and China, and the potential margin calls resulting from the copper hedge position that the company booked on the London Metal Exchange.