Each year, GTR carefully selects the market’s Best Deals from the past 12 months, based on submissions sent to the editorial team. These winning transactions showcase excellence across trade, commodities, supply chain and export finance, as well as fintech innovation.
This year saw an especially competitive field in export finance, with intense competition in renewables and road infrastructure deals. Interestingly, fintech innovation submissions were fewer than in previous years.
Congratulations to those behind these 12 winning transactions, recognised as the top deals of 2024.
Blue Astra Maritime decarbonisation package
First “4 corner” digital bill of exchange transaction
FNC sustainability-linked pre-export finance
HCL products business long tenor portfolio purchase
Jubilant UPAS letter of credit facility
Murabaha financing for Turkish earthquake relief
Salzgitter Group green steel transformation
Starlink Global cashew project
Vestas sustainability-linked programme
Zallaf Libya South refinery project
Decarbonising the shipping industry
- Deal name: Blue Astra Maritime decarbonisation package
- Borrower: Blue Astra Maritime
- Amount: US$123.7mn
- Lender: MetLife
- Export credit agency: Atradius DSB
- Structuring entity: Atal Solutions
- Law firms: A&O Shearman, Holman Fenwick Willan, Norton Rose Fulbright
- Tenor: 12 years
- Date signed: March 2024
On a daily basis, there are tens of thousands of merchant ships crisscrossing the globe packed with vital commodities and goods.
Yet this system of international trade comes at an environmental cost. Today, it is estimated by the UN that the global shipping industry accounts for about 2.8% of global greenhouse gas emissions.
In this winning deal, GTR recognised an export finance transaction aimed at driving the industry’s decarbonisation efforts.
Blue Astra Maritime sought external financing to help purchase four vessels and retrofit them with several types of sustainable technologies. According to the deal’s backers, the move will slash CO2, sulphur dioxide and nitric oxide emissions from the ships by up to 99% and achieve at least 20% improvements in fuel efficiency.
Atal Solutions is providing a US$105.2mn supplier’s credit worth 85% of the project cost, having secured funds from MetLife. The loan is guaranteed by Atradius DSB.
Meanwhile, equity financing from Blue Astra’s shareholders is covering the 15% down payment.
The structure is innovative as second-hand ships are typically not financed for more than 50%, Atal tells GTR.
“Additionally, the 12-year payback period is unusual, and a 15% down payment is significantly low. This combination makes the financing structure not only unique in the market but also within the shipping sector.”
The deal will pave the way in removing financial barriers for shipowners and ultimately accelerating compliance with global regulations, it says.
“The maritime industry faces mounting pressure to reduce emissions, but progress is hindered by limited financing options and complex stakeholder dynamics. Emerging regulations are increasing pressure on shipowners to invest in sustainable solutions.”
The next step in digital trade
- Deal name: First “four-corner” digital bill of exchange transaction
- Borrower: Leading sugar producer with operations across the Americas
- Amount: €600,000
- Collecting bank: Lloyds Bank
- Remitting FI: Mercore Capital
- Technology provider: Mercore Ltd, powered by Enigio
- Tenor: 90 Days
- Date signed: August 2024
Lloyds and Mercore Group used fintech Enigio’s trace:original solution to perform the first-ever node-to-node digital trade transactions between two financial institutions (FIs).
The deal consisted of five shipments totalling €600,000 from a sugar producer in the Americas, a Mercore Capital client, to a UK-based buyer. Mercore Capital originated digital bills of exchange and using trace:original transferred possession to Lloyds, which then obtained acceptance of the bills from the UK buyer.
Each shipment had a tenor of 90 days, but was discounted by Mercore Capital, meaning the supplier received funds immediately.
Previous digital trade transactions have only included one FI, which has serviced both the buyer and seller. But the submitters point out that most trade finance is conducted with two FIs, and that this deal was the first known example of a fully digital transaction of this type.
The submitting FIs say that the use of digital shipping documents eliminated the need for courier services, which reduced both the cost and transaction time for all parties.
The latter was shortened from weeks to hours. This led to significant working capital efficiency for both parties, with the supplier being able to access the discounted funds from Mercore on the same day of execution, and the buyer having an extended payment period of 90 days by accepting the digital bills of exchange compared to 30 days on an open account basis.
“It’s been fantastic to be involved in these groundbreaking trades that build on the success of the world-leading digital transactions we have completed over the last two years,” says Lloyds Bank’s Surath Sengupta.
“Digital trade solutions make it simpler, faster and more efficient for our clients to do business. These transactions with Mercore demonstrate the ease at which digital documents can be created and transferred between parties, and will create more opportunities for digitalisation. We look forward to collaborating with more clients and banking partners to make digital trade a reality.”
Volatility and violence in Colombia’s coffee market
- Deal name: FNC sustainability-linked pre-export finance
- Borrower: Fondo Nacional del Café, Colombia
- Amount: US$50mn
- Lender: SMBC
- Tenor: 3 years
- Date signed: May 2024
Last year was turbulent for the international coffee market, characterised by dramatic price increases amid concerns over low production in certain key producing countries.
In Colombia, coffee production actually grew by around 20%, but for Fondo Nacional del Café (FNC), that meant an injection of capital was needed.
FNC was established nearly a century ago by the Colombian government, and is mandated to purchase green coffee from farmers at fair prices and export it to developed markets.
The coffee sector represents over a fifth of Colombia’s agricultural GDP and 8% of its overall economic output, and FNC’s activities support the welfare of more than 500,000 families.
In anticipation of the main coffee harvest season from November to January, SMBC agreed a US$50mn pre-export finance facility with FNC, enabling it to fulfil its requirement to purchase coffee despite the increase in prices and swell in production.
The facility also has sustainability-linked features based on FNC’s government mandate to provide technical assistance, supporting the transformation of coffee farming into a profitable business, as well as technological research to ensure industry-wide sustainability.
This deal is also noteworthy due to its ambitions to eradicate violence in rural areas, a priority of the Colombian government.
Coffee farms are seen as “symbols of peace and resilience in regions scarred by conflict”, SMBC says, offering rural populations a sustainable economic activity against a tumultuous backdrop.
“SMBC is committed to supporting companies around the world that have specific goals towards making sustainable economies and improving people’s quality of life,” the bank says.
Using trade finance to support SaaS
- Deal name: HCL products business long-tenor portfolio purchase
- Borrower: HCL Technologies Limited and its subsidiaries
- Amount: US$100mn
- Lender: Citi
- Broker: WTW
- Insurer: Atradius
- Law firm: Norton Rose Fulbright
- Tenor: 3 years
- Date signed: June 2024
This deal extends a discounting facility from Citi to Indian IT services company HCL Technologies Limited for long-tenor receivables totalling US$100mn.
The receivables are for subscription payments for a suite of HCL’s software as a service (SaaS) products acquired from IBM in 2019, which are spread over three-year contracts. Citi says that this has enabled HCL to overcome
the limits on new business origination caused by the counterparty risk of providing its services to non-investment-grade buyers.
According to Citi’s submission, this marks the first time that a bank has extended a receivables discounting facility to a company for SaaS trade, which required working extensively with the insurer, Atradius.
This transferred the credit risk to the insurer, which Citi says makes it highly risk-efficient. The bank also took into account the distributed risk profile of the portfolio, allowing it to lower the cost of financing.
The deal has also been a success for the customer, increasing HCL’s appetite for further business with its clients due to lowered receivables credit risk on its balance sheet, as well as cutting its days sales outstanding, allowing for greater liquidity visibility and control.
“This deal underscores our position as the leading bank for technology clients, delivering tailored solutions that align with our clients’ strategic goals,” says Shalin Shroff, head of trade and working capital sales, Asia South at Citi.
“By enabling HCL’s forward-thinking treasury team to unlock working capital through a scalable long-tenor receivables purchase structure, we’ve addressed key risk management and balance sheet needs.”
Expanding radiography manufacturing in the US
- Deal name: Jubilant UPAS letter of credit facility
- Borrower: Jubilant DraxImage Inc (JDI)
- Amount: US$25mn
- Lender: Bank of America
- Tenor: Up to 2 years
- Date signed: September 2024
This US$25mn facility allows pharmaceutical manufacturer Jubilant Pharmova Limited’s radiopharmaceuticals subsidiary JDI to expand its manufacturing facilities in the US.
JDI will use the facility to issue US$25mn of usance payable at sight (UPAS) letters of credit (LCs) to suppliers for purchases of capital equipment. This allows the company to expand its manufacturing capabilities for radiology pharmaceutical products for prescription to patients. It will increase access to ground-breaking treatment for patients across the US, especially to fight cancer.
As the equipment is high value and made-to-order, these LCs provided assurance to both JDI and its suppliers.
The UPAS LCs have a door-to-door tenor of two years. Under the arrangement, the supplier submits complying shipping documents to its bank. The supplier bank releases the documents to Bank of America, which makes payment to the supplier after verification of documentation, the bank says.
The tenor allows Jubilant greater flexibility to improve its balance sheet and prioritise more immediate expenditure, while suppliers are still able to be paid upon shipment, helping their cash flow. The arrangement is unique in North America, according to the bank.
“The solution proposed by Bank of America was ideal on so many levels,” says JDI’s head of group treasury Arun K Sharma. “It delivered the right degree of risk mitigation and liquidity we were looking for. As a result, Jubilant was able to proceed with our capital procurement strategy confidently and swiftly while cementing the working relationship with our suppliers.”
Earthquake relief and trade finance capacity building
- Deal name: Murabaha financing for Turkish earthquake relief
- Borrowers: Industrial Development Bank of Türkiye (TYKB), Development Investment Bank of Türkiye (TSKB)
- Amount: US$150mn
- Lender: Islamic Trade Finance Corporation (ITFC)
- Guarantor: Government of Turkey
- Tenor: Up to 2 years
- Pricing: Two-year mid swap + spread
- Date signed: August 2024
In responding to 2023’s devastating earthquake in southern Turkey, which claimed almost 50,000 lives, the ITFC saw an opportunity to increase the trade and supply chain financing capacity of local lenders.
This deal, signed with the two state-owned banks, was structured so that in addition to providing vital medium-term financing support for affected companies, the groundwork was also laid for improved future access to finance for those firms and the affected region more broadly.
The ITFC provided murabaha working capital and trade finance facilities to two state-backed banks, the Industrial Development Bank of Türkiye (TYKB) and Development Investment Bank of Türkiye (TSKB), to finance companies in priority areas. The ITFC also secured guarantees from the Turkish government.
Through the deal, TYKB realised its ambition of diversifying into trade finance, while TSKB gained capacity to provide Islamic trade finance. The Turkish treasury and finance ministries also gained exposure to murabaha trade finance through the initiative.
As the ITFC points out in its submission, “the amount of the deal is not big compared to the overall needs… of the earthquake recovery, but the deal has a strategic importance as it paves the path for the government as well as TKYB and TSKB on alternative ways of attracting funds for critical needs of the country”.
“While addressing the needs of companies affected by the tragic earthquake of 2023, the parties opened a new chapter in their history through public sector cooperation, in other words, concluding sovereign guaranteed financing agreements,” it says.
SMEs rebuild important trade artery
- Deal name: Olounou-Oveng road expansion
- Borrower: Cameroon Ministry of Finance
- Amount: €94.8mn
- Lead arranger, lender and Sace agent: Deutsche Bank
- Export credit agencies: Sace, Simest
- Financial advisor: Bluebird Finance & Projects
- Tenor: 13 years
- Date signed: October 2024
The main road between Olounou and Oveng is in such poor shape that in the wet season it can become almost impassible. That’s a problem, because it acts as an important trade artery connecting Cameroon with Gabon.
This deal, almost 10 years in the making, will rehabilitate and expand the road to make it traversable in under two hours, compared to current travel times of half a day, according to the submission by financial advisors Bluebird Finance & Projects. The project includes the construction of 13 concrete bridges.
“This unique deal is the essence of export finance – a project which will improve the lives of millions, and which will fix a huge unreasonable gap – a critical national route which has been so far, for many years, a dirt road,” says Bluebird chief executive Ram Shalita.
From an export finance perspective, the deal has unique features. Instead of a large, global engineering, procurement and construction contractor, the project will be carried out by two Italian SMEs in a joint venture.
The companies – SEAS Srl and Cosedil SpA – navigated complex environmental assessments, logistical challenges, due diligence and other factors in Cameroon, which has not seen as much ECA-backed activity as similar-sized countries in the region. In addition to a guarantee from Sace, the transaction also benefits from an interest rate stabilisation product provided by Simest, which promotes the internationalisation of Italian firms.
In the words of Shalita, “it is a first of its kind – a huge project managed by a group of small SMEs – a great example for the industry, who should aim more toward SMEs, and not only the big usual names”.
Green overhaul for German steelmaking giant
- Deal name: Salzgitter Group green steel transformation
- Borrower: Salzgitter Flachstahl GmbH
- Amount: €300mn (Sace facility), €200mn (OeKB facility)
- Coordinating MLA: Commerzbank (OeKB facility)
- MLAs and lenders: BNP Paribas, Commerzbank (OeKB facility), Deutsche Bank, UniCredit (Sace facility)
- Bookrunner, facility coordinator and agent: BNP Paribas (Sace facility)
- Sustainability coordinator: Deutsche Bank
- Facility agent and ECA agent: BNP Paribas (Sace facility), Commerzbank (OeKB facility)
- Export credit agencies: OeKB, Sace
- Law firms: Linklaters, Norton Rose Fulbright
- Tenor: 11.5 years
- Date signed: March 2024
Steel is a critical component of the world’s infrastructure, yet the sector is highly polluting, accounting for more than a tenth of global CO2 emissions.
In 2015, Salzgitter, one of Europe’s largest steelmakers, launched an ambitious project to dramatically reduce its carbon emissions, including by replacing blast furnaces with electric arc furnaces and constructing direct reduction iron ore plants.
This award recognises the ambitious nature of the company’s climate plans – with the overall project expected to cut its carbon emissions by 95% – as well as the innovative multi-ECA structure deployed to make them a reality.
The unsecured financing package is split into two components. A €300mn loan, backed by Italy’s Sace, will support the construction of the direct reduction plant, which is to be supplied by Italy-based Tenova and Danieli.
An additional €200mn facility, backed by OeKB of Austria, will enable the supply of the electric arc furnace from Primetals’ Linz-based business.
“The use of ECA covered financings in this project is an important reference for future sustainable transition cases,” says Markus Ohse, senior corporate banker at Deutsche Bank.
Production will eventually be powered entirely by renewable electricity, including from wind power and green hydrogen, although natural gas will be used during a transition period.
Deutsche Bank describes the transaction as a “landmark deal”, noting Salzgitter is the first steel company in Germany to begin such a transition. The project, due for completion in 2033, is expected to reduce Germany’s aggregated carbon emissions by 1%, it says.
Processing raw commodities in Nigeria’s cashew market
- Deal name: Starlink Global cashew project
- Borrower: Starlink Global & Ideal Ltd
- Amount: US$20.8mn
- Lender and facility provider: African Export-Import Bank (Afreximbank)
- Local administrative agent and guarantor: FCMB Nigeria
- Tenor: 7 years
- Date signed: July 2024
Nigeria is a major grower of cashew nuts, but less than a tenth of its crop is processed domestically. As the country seeks to grow its non-oil economy and add more value domestically, this facility recognises an important effort by Starlink Global and Afreximbank to bring cashew processing onshore.
Lagos-based Starlink, an exporter of raw cashew nuts, cocoa beans and sesame seeds, will use the proceeds to construct a factory that can process 30,000 metric tonnes of raw cashews per year, as well as warehousing facilities.
The financing from Afreximbank is in two tranches, with US$7.5mn for construction of the processing facilities and US$13.3mn to provide working capital once it is operational.
Currently, Afreximbank says, the vast majority of Nigeria’s raw cashews are sold “at relatively low prices” to markets such as China, Vietnam and India, which together process around 85% of the global supply of cashew nuts.
Globally, the market for cashews is expected to grow from under US$8bn today to US$11.7bn by 2033, the multilateral financial institution says.
Afreximbank’s impact analysis estimates the project could generate 400 jobs and support 40 SMEs, while improving foreign exchange earnings in Nigeria. The transaction will also help Starlink grow partnerships within the cashew value chain and improve foreign exchange earnings within the country, it adds.
“With plans for an ultra-modern facility and warehousing to facilitate export, the project positions Nigeria competitively in the global cashew market, elevating its role on the international stage,” Afreximbank says.
India’s green manufacturing push
- Deal name: Reliance Sace Push
- Borrower: Reliance Industries Limited
- Amount: US$1bn
- Facility agent, ECA coordinator, green coordinator and structurer: HSBC
- Green MLAs and lenders: Bank of America, BNP Paribas, Crédit Agricole, KfW Ipex-Bank, Mizuho, MUFG, SMBC
- Export credit agency: Sace
- Law firms: Chiomenti, Juris Corp, Milbank
- Tenor: 12 years
- Date signed: November 2024
Reliance Industries is the largest private sector corporation in India with activities in a wide range of sectors, from oil and gas exploration and petrochemicals to food and electronics retail.
Historically, the firm’s business has been rooted in fossil fuels and it operates one of the world’s largest crude refineries.
But having set a target of achieving net-zero carbon emissions by 2035, the conglomerate is eying new areas of business.
In the state of Gujarat, Reliance is currently developing its Dhirubhai Ambani giga-complex, which will house manufacturing facilities for various types of green energy technologies, including solar cells and batteries.
In need of financing for these projects, Reliance tapped a group of international banks for a green loan facility that is backed with a guarantee from Italy’s export credit agency Sace.
The transaction, Reliance’s first green loan, will finance the construction and operation of manufacturing projects, including for solar photovoltaic, energy storage and green hydrogen technology. It is predicted the deal will contribute to the deployment of 100GW of solar energy by 2030.
The facility is Sace’s largest and longest green loan and was signed under its Push strategy – an untied programme that has boomed in recent years.
“In terms of structuring complexity, this green loan framework marks the first for a large organisation like Reliance,” says HSBC in its submission.
The transaction required a “tailored approach” that ensured full compliance with green loan principles, HSBC says.
“It is also one of the very few ‘Green Push’ structures entered into by Sace and the structuring approach required an involved engagement with all the contracting parties.”
Driving ESG in Brazil’s wind supply chains
- Deal name: Vestas sustainability-linked programme
- Borrower: Vestas do Brasil Energia Eólica
- Amount: R$100mn
- Sole structuring coordinator and sustainability coordinator: Banco Santander Brasil
- ESG ratings provider: EcoVadis
- Tenor: 2 years (includes automatic renewal)
- Pricing: Fixed monthly rate that varies according to the CDI index
- Date signed: August 2024
For over a decade, wind turbine manufacturer Vestas has operated a production facility in Brazil, serving as a crucial supply hub for Latin America.
As much as 80% of the firm’s regional output is generated at the facility in Brazil’s Ceará state, with goods then sold locally or exported to projects elsewhere in the Latin America region.
In this winning deal, Santander helped Vestas roll out a sustainability-linked supply chain finance (SCF) programme aimed at driving ESG improvements among the firm’s local supply base.
It has meant that suppliers with a strong performance on various metrics – as assessed by global ESG ratings provider EcoVadis – have been able to secure more favourable financing terms from the bank.
“This approach not only facilitates easier access to credit but also incentivises the adoption of sustainable practices across Vestas’ supply chain, fostering a more responsible and resilient business ecosystem,” Santander says in its submission.
Notably, the programme was Vestas’ first sustainability-linked SCF programme globally and was initially rolled out in Brazil. Santander tells GTR that 70 key suppliers – representing nearly two-thirds of Vestas’ annual spend in Brazil – were invited to participate in the project’s first phase.
EcoVadis assesses their environmental impacts, including carbon footprint, waste management, social criteria such as labour rights and diversity inclusion, as well as anti-corruption policies and other governance factors.
“As Vestas’ first global sustainability-linked SCF programme and Santander’s first in Brazil, it sets a new benchmark for sustainable finance. The initiative incentivises suppliers to improve ESG practices, fostering tangible environmental, social and economic benefits,” the bank tells GTR.
Securing investment in Libya’s south
- Deal name: Zallaf Libya South refinery project
- Borrowers: UOP Limited – Honeywell Group, Zallaf Libyan Oil & Gas Company
- Amount: US$88.53mn (letter of credit and performance bonds)
- Lender/confirming bank: British Arab Commercial Bank (BACB)
- LC issuing bank: Libyan Foreign Bank
- Tenor: Letter of credit matures March 2026, performance bond expires October 2028
- Date signed: June 2024
Libya is not at the top of most banks’ investment wish list, but in this deal, BACB overcame what it describes as “international banks’ limited risk appetite” to secure a deal to import supplies to a new oil refinery in the country’s vast south.
The refinery will be the first in the region, which lacks the development seen by the coastal cities of Libya’s north, where its oil export wealth is concentrated. The refinery will produce cooking gas, jet fuel, petrol and diesel, bringing jobs and infrastructure development to the south, BACB says in its submission.
In the deal, BACB acted as confirming bank for a letter of credit issued by the Libyan Foreign Bank to UOP for the import and installation of equipment for the refinery. BACB also issued performance bonds in favour of Zallaf Libyan Oil & Gas Company, on behalf of UOP.
BACB leveraged its deep experience and connections with the country – including a shareholder relationship with the Libyan Foreign Bank – to get the deal through and to work with UOP’s London bankers. BACB also succeeded in distributing the risks to banking and insurance partners.
“This deal underscores the strength of BACB’s unique trade finance offering and footprint across Africa,” says Damian Austin, BACB’s chief banking officer. “We have spent years developing our regional expertise to help facilitate deals such as this, working with our close partners in both London and Libya to channel much-needed financing to the area.”
