Stenn, a UK-based non-bank trade finance provider, has closed a US$200mn receivables securitisation programme with investment bank Natixis, as part of an ongoing expansion of its capital markets programme.
Stenn is the sponsor, originator and servicer of the portfolio, with senior financing arranged by Natixis, which served as programme arranger and placement agent. The funding will be used to open additional global growth opportunities for the business, enabling it to provide a greater number of suppliers and buyers with access to working capital at a faster and more agile rate than the traditional banking sector.
“This unique securitisation platform allows Stenn and our investors to continue to grow to a multi-billion-dollar programme and welcome more investors as we meet the ongoing needs of international trade finance,” says Greg Karpovsky, founder of Stenn. “In today’s climate, with ongoing discussions of trade wars and an uncertain geopolitical landscape, it’s important that businesses can confidently plan ahead. Access to trade capital is a massive contributor towards being able to do this.”
This development comes a month after Stenn brought in Chris Rigby, formerly managing director of Lloyds Bank’s securitised products group, to manage its capital markets issuance and fundraising efforts as global head of finance and capital markets, a newly-created role.
The transaction is the latest in a series of deals for Stenn, which plans to boost its trade finance capacity to US$1bn as it attempts to address the US$1.5tn trade finance gap by providing financing to global importers and exporters who are underserved by the traditional banking industry, helping to unlock capital in the supply chain.
In July last year, Stenn closed a US$500mn senior financing facility with Natixis, which provided it with additional capacity to deliver working capital solutions to suppliers and buyers engaged in international trade.
That facility, which was supported by trade finance insurance from global insurer AIG, in turn augmented a US$300mn platform launched by Stenn and Crayhill Capital Management in 2016. Crayhill, a credit-focused alternative asset management firm, played an active role in securing the two recent Natixis facilities and continues to serve as a capital partner and advisor to Stenn.
“We greatly value the support of Natixis and Crayhill in completing the securitisation programme,” says Michael Tenitsky, Stenn’s chief legal officer. “This milestone firmly establishes Stenn in the capital markets and lays the foundations to support our rapid growth. Having closed such a complex transaction, we are confident in our ability to execute similar transactions in the future.”
In addition to the participation from Natixis, the receivables securitisation programme is tailored for the needs of capital markets investors, and Stenn now expects to bring in additional private capital investors in the future.