Finacity Corporation has closed a securitisation transaction with Alliance One International as the originator and servicer, and Finacity as the structuring agent, SPE-sponsor and ongoing information reporting agent.

The three-year facility covers selected receivables from the sale of agricultural commodities to some two dozen non-OECD domiciled customers. The facility is expected to provide AOI with risk-mitigated monetisation of up to US$55mn from time to time through the ongoing securitisation of trade receivables generated by Swiss-based AOI AG.

AOI’s treasurer Joel Thomas says: “We are very pleased with the implementation of this innovative structure, which is in line with AOI’s strategic financial goals. The transaction puts to use a strong AOI asset, and offers the company an opportunity to utilise the capital markets for attractively priced funding while de-leveraging our balance sheet. The structure also offers AOI additional liquidity, enhancing our financial flexibility”.

“We are very proud to have served AOI in a complex cross-border commodity transaction designed to maximize liquidity and minimize cost-of-funds, while removing the ongoing administrative burden to our client AOI,” adds Adrian Katz, CEO at Finacity.

Alliance One International is head quartered in North Carolina and engages in the purchase, processing, storage, and sale of leaf tobacco around the world. The company offers its products to manufacturers of consumer tobacco products and was founded in 1904.

Finacity is a company that specialises in the structuring and provision of efficient capital markets receivables funding programmes, and state-of-the-art servicing and collections. Finacity is located in the US and Europe.