The Commodity Bond

This is the truest form of structured trade finance, perfecting a trust structure relationship wherein all of the underlying transactional assets are isolated within an SPC securitizing the bond. The SPC will have been established specifically and strictly to conduct a commodity transaction and cannot engage in any other business. This structure is central to obtaining a funding commitment with qualified lenders, who look primarily to the underlying collateral assets, yield, risk mitigation and cashflows of the transaction as repayment.