Financial Institutions, Trade & Commodity Finance
Through our short- and medium-term finance products we help ensure that international trade flows run smoothly, and that Germany and Europe are supplied with food, raw materials and commodities.
What would happen if there were no coffee left in the supermarket tomorrow? If chocolate were sold out, and our children's favorite chocolate spread were no longer available? To make sure this does not happen, business partners need to trust one another. The exporter has to be able to rely on the fact that he will be paid for his coffee beans. And finance may also be needed to enable farmers and processors to cultivate, harvest and process the needed goods.
Trading partners often need additional liquidity at short notice, as well as a bank that is willing to accept the risks associated with the transaction. This is why we have supplemented KfW IPEX-Bank's core product – the short- and medium-term loan – with short-term finance solutions that support our trading partners' ability to do business.
Managing country risks
External factors too may jeopardise the success of an international transaction. These include political change, or potential amendments to legal frameworks. We have years of experience in managing country risks, and enjoy an excellent reputation as a flexible organisation to deal with – also for other banks, which we are glad to support in this regard.
Our segments and finance products:
- Financial Institutions
We arrange global business with banks and insurance companies and their subsidiaries in all sectors, usually in emerging markets: bank-to-bank loan facilities or global frameworks, i.e. framework agreements to finance projects with or without ECA cover.
- Trade Finance
By purchasing receivables or participating in risks arising from guarantees or export letter of credit structures we help our clients make use of standardised instruments for international trade finance.
- Commodity Finance
We structure loans to finance inventories of - or receivables from - listed commodities (e.g. oil, metals or agricultural products) with short maturities: export finance arrangements, prepayment of goods, tolling and warehousing, and risk participations in import letter of credit structures.
Financing case Ghana Cocoa Board - Fair prices for cocoa producers
KfW IPEX-Bank is participating in a long-standing success story - the Ghana Cocoa Board receivable-backed trade finance facility.
Ghana is the world's second-largest cocoa producer. The Ghana Cocoa Board was established to help farmers market and sell their produce. Known the world over as COCOBOD, the Board's purpose is to purchase the annual cocoa crop and place it on the world market at a price that is fair to Ghanaian cocoa producers. To this end COCOBOD raises the funds it needs every year to purchase the cocoa harvest. In 2015 this meant a financing requirement of no less than USD 1.8 billion. We are proud that we have been part of the finance group for years, because this enables us to support not only Ghanaian producers, but also the confectionery industry as well as chocolate-lovers in Germany, Europe and the world over!