Senwes Scenario June/July 2018 - Page 30

FINANCING Structured Finance An innovative approach to agriculture’s diverse financing needs Senwes Credit recently launched its new operational structure which includes Structured Finance as a new addition to the solution driven approach employed by Senwes Credit. This approach aims to provide innovative, value-adding solutions to clients.  By Johan Kunz Senwes Head of Structured Finance that adding this solution to its current offerings will add value to its clients and to agriculture in general. benefit most from Structured Finance, it will also be utilised to the benefit of grain and livestock producers. tructured Finance is the develop- ment and application of innova- tive financing techniques and – solutions where existing financing products do not provide solutions to com- plex and unique financing requirements. Standard financing products are referred to as “Vanilla products”. Structured finance therefore aims to address “non-Vanilla” requirements. CHARACTERISTICS OF SENWES CREDIT STRUCTURED FINANCE ➊ Uniquely tailored to each individual Producer’s specific financing needs. ➋ Cash flow strength and - trends will be instrumental in assessing the financing need and repayment ability. ➌ Offer clients innovative ways of pool- ing financing requirements in order to bring down finance cost. ➍ Close working relationship with other Senwes Credit structures so as to best address clients’ total financing needs. ➎ Collaboration with Senwes’ other busi- ness units in order to determine over- lapping opportunities for value add for the producer. EXAMPLES OF STRUCTURED FINANCE Although each client’s needs, and the resulting solution offering will be unique- ly tailored, generic examples of the Structured Financing solutions to be offered by Senwes include: • Capital syndicate financing; • Operating capital financing; • Bridging capital financing; • Revolving credit facilities; • Commodity finance; and • Value chain finance. S WHY THE NEED FOR STRUCTURED FINANCE? As producers expand their farming activi- ties into adjacent industries, and as farm- ing operations increase in size, producers’ financing needs inevitably become more complex and uniqu