Finacity Corporation has upsized and extended a significant trade receivables securitisation transaction for one of its clients, a Fortune 100 company. The funding programme was rolled over for a fourth year and increased to around US$90mn in funding availability.

The initial facility, first funded in 2002, started at US$40mn and included domestically originated receivables from obligors in Latin America and the Middle East, sold from one division.

In addition to the original obligors, the upsized transaction now includes receivables from obligors in Asia, the US, Canada and Eastern Europe which purchase from three subsidiaries of Finacity’s client.

The programme is funded by a facility setup with an asset-backed commercial paper conduit from one of the world’s largest banks. Euler Hermes ACI, the trade credit insurer, continues to insure the credit and political risk associated with the underlying obligor receivables purchased.

With this extension, Finacity has moved from monthly funding activities to purchasing and funding receivables on a daily basis to maximise the client’s liquidity and minimise its obligor risk exposure.