The Trade Finance team in Trafigura is a key department within the Group. The ability to both raise liquidity from our financial partners and mitigate credit and performance exposure of our trading counterparties are key responsibilities for any successful company.
The Trade Finance team has many key partners, including but not limited to, our external Banking & Insurance partners, external counterparties, Traders, Operations, Deals Desk, Tax, Treasury, Credit, Compliance.
On a daily basis the Trade Finance team performs a number of tasks, such as:
- The issuance of Letters of Credit and Bank Guarantees for the Company’s purchases of crude and oil products and ensuring that both cargoes and storage facilities are financed and insured in a timely manner.
- Overseeing analysis, monitoring, mitigation and awareness of the Company's financial risks.
- Ensuring compliance with storage and commercial contracts in protecting the Company’s interests.
- Making appropriate finance decisions, including overseeing cost effectiveness, diversity of financing sources, and minimum use of the Company's own liquidity.
- Providing guidance to Finance Officers and Traders in difficult or unfamiliar situations.
- Carrying responsibility for the maintenance of the regional bank lines as well as serving as the Company's main liaison with our Banking partners.
- Overseeing that the Company is not exposed to risks associated with the OFAC regulations in force at any time.
- Working with Deals Desk personnel to ensure any incurred costs agreed by Trade Finance are allocated correctly to the separately maintained deal Profit & Loss accounts.
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To fully master the role takes years of training as it requires an in-depth knowledge of every element of physical trading, the counterparties we trade with, and any regional specific issues regarding security and risk. It is essential to maintain a flow of communication with all key partners as deal specifics can change hour by hour, day by day.