Pioneering commodity deal floored by Russia crisis

By Owen Sanderson
31 Jul 2014

BNP Paribas has decided to prepay its pioneering commodity finance securitization Lighthouse Trade Finance No. 1, as since Russia precipitated the crisis in Ukraine, it can no longer find enough commodity receivables to continue backing the deal.

According to Fitch, the deal is being called “because of the shortage of commodity transactions originated by the Geneva booking centre, which focuses on energy commodities sourced from Eastern Europe, including Russia”.

BNPP told Fitch that the decision to prepay the deal was not linked to its ...

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