Structured trade finance
Commodity trading requires capital at different stages of the transaction lifecycle. Cap-Connect brings together commercial execution and structured finance so that capital can be aligned with the requirements of an individual trade.
Corporate capital
Cap-Connect's own working capital may be deployed where appropriate as part of a transaction structure, either as the whole requirement or alongside other funding.
Corporate capital is committed against defined commercial requirements following completion of counterparty and transaction assessment.
Financial instruments
Eligible transactions may incorporate recognised banking instruments — such as documentary letters of credit, standby letters of credit or authenticated bank-to-bank messaging — where these provide an appropriate commercial framework between buyer and seller.
Cap-Connect is not a bank and does not issue banking instruments. Any such instrument forming part of a transaction structure is issued or transmitted by an appropriate financial institution in accordance with that institution's own procedures and the contractual terms of the transaction.
Collateral
Certain transactions may incorporate independently documented assets or other agreed security arrangements designed to support the financing requirement.
Where collateral or security arrangements form part of a structure, their nature, valuation basis, enforceability and limitations are described in the documentation for that transaction. Collateral arrangements do not guarantee capital, returns or liquidity.
Private debt / Loan Notes
Where external capital is appropriate, Cap-Connect may establish a private Loan Note Issue with a stated commercial purpose, defined term, documented investor terms and an identified use of proceeds.
Loan Note Issues are made available only to qualifying investors and are subject to eligibility, KYC/AML procedures and the definitive documentation relating to each Issue.
Transaction controls
Counterparty onboarding, sanctions and AML screening, documentary review, insured logistics, independent assay and contractual settlement mechanics form the control framework applied to transactions.
Capital is released against defined transaction milestones rather than on the basis of an offer or unverified documentation.
