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