HSBC’s Structured Trade Finance team in Hong Kong has been recognized by three leading industry publications for the innovative Structured Trade Finance facility arranged in favour of Huscoke/Golden Rock. Global Trade Review, Trade & Forfaiting Review, and Trade Finance have all awarded HSBC their ‘Deal of the Year’ award for this transaction. This is the second year in a row HSBC Structured Trade Finance has swept the “Deal of the Year” award for a Structured Trade Finance solution.
HSBC put together a sophisticated secured coke export-backed revolving facility which blended borrowing base and pre-export/prepayment techniques to address a complex mix of customer requirements, local regulations and risk factors. In partnership with Duferco SA, Golden Rock’s key strategic buyer, a USD 50m facility was provided to Golden Rock as an export-related prepayment from Huscoke. The structure was designed in a manner which limited the risk exposure of HSBC and Duferco SA (the Lenders) while providing greater flexibility to Golden Rock and its business operations.
Golden Rock, one of China’s leading coke manufacturers and exporters, wished to raise cost efficient offshore funding to finance working capital requirements through its Hong Kong-based trading partner, Huscoke International Group Limited (“Huscoke”), as domestic liquidity at the time was increasingly costly to obtain.
HSBC was selected to provide a Structured Trade Finance facility based on its in-depth understanding of Golden Rock’s operations, existing relationship with Duferco and Huscoke and its superior ability to provide a creatively structured solution which addressed a myriad of client and lender requirements.
“We structured a sophisticated end-to-end solution to address all the clients’ requirements and compete with their incumbent Commodity Finance bankers,” says Erwan Cesbert, senior vice president structured trade finance Asia Pacific at HSBC. “We are delighted to receive three Deals of the Year awards from subject expert reviews, which recognizes our capabilities and commitment to developing innovative and tailored-made financial solutions adding value to the trade flows of our clients.”
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