Texel Group has created Texel Capital, a 100% owned funding vehicle, set up to underwrite and fund Texel originated transactions, as well as participate in other syndicated facilities.
The new funding source leverages on Texel’s own equity, and allows the company to extend its range of products it can offer to prospective borrowers of trade finance debt.
Andy Lennard, managing director of Texel Group explains: “It became very apparent to us that there is a definite requirement for financing facilities of between US$1-5mn that is not practically viable for the traditional financing community, as well as larger transactions that could be structured in collaboration with Texel’s banking client base. It is a critical factor of the enterprise’s philosophy and practical ability, that the deals to be financed are outside the normal parameters and appetite (from a size perspective) of our banking client base, but that we aim to assist smaller borrowers to grow and develop a track record in order to reach a size that meets commercial banking standards.”
“We are focussing on participations and underwriting between US$1m and US$10m with maximum tenors of 36 months,” he adds.
Texel Finance is based in the UK and provides finance and risk mitigation services mainly to the commodity pre-export market as well as in bilateral trade finance and project finance markets.