Standard Chartered, Trafigura and Advario complete live electronic oil inventory financing via SGTraDex
6 September 2022, Singapore – Standard Chartered, Trafigura and Advario announced today the completion of their first live electronic oil inventory financing via Singapore Trade Data Exchange (SGTraDex), a common data infrastructure launched in June 2022 to facilitate trusted and secure data sharing across supply chains.
Standard Chartered provided financing to Trafigura for its oil inventory stored by energy storage company Advario, where Advario provided key data elements that enabled the execution of the trade electronically via SGTraDex. This paperless transaction was done by way of the Bank’s Structured Inventory Product (SIP), in which Standard Chartered obtained title of the oil purchased from Trafigura before selling it back to the leading global commodities trader within a pre-agreed timeframe. The transfer of title helped to free up Trafigura’s cash flow for a longer period of time.
Documents of transactions conducted on SGTraDex are verified using the TradeTrust framework and distributed ledger technology. The establishing of a SGTraDex data-sharing connection between oil terminals and financing banks on SGTraDex also ensures that timely and immutable inventory information is passed from the terminal to the bank without any risk of tampering or alteration.
The success of this transaction demonstrates the viability of electronic oil inventory financing in reducing the risks of double-financing and thereby helping to facilitate greater funds accessibility for a wider pool of traders.
Stephan Jansma, Chief Financial Officer, Asia Pacific, Trafigura, said “Trafigura is pleased to take a leading role in the digital transformation of commodity trade flows, together with Standard Chartered, one of our key banking partners, Advario and SGTraDex. We are working towards SGTraDex becoming a regular feature in the financing of our inventories in Singapore and other import and export flows.”
Patrick Lee, Cluster CEO, Singapore and ASEAN Markets (Malaysia, Vietnam, Thailand and Representative Offices), Standard Chartered, said “We are proud to partner with Trafigura and Advario in executing our first live electronic oil inventory financing via the SGTraDex digital infrastructure. The success of this significant transaction underscores Standard Chartered’s commodity finance capabilities and demonstrates our commitment to supporting the growth and development of a secure and transparent digital supply chain ecosystem. Together we can play a key role in enhancing Singapore’s competitiveness as an international trade and commodity finance centre.”
Antoine Cadoux, CEO, SGTraDex, said “We would like to congratulate Standard Chartered, Trafigura and Advario on their first live transaction on SGTraDex. All parties have been instrumental in developing our digital infrastructure and use cases. We look forward to our continued collaboration to drive adoption and develop new use cases across the industry. We are confident SGTraDex, with our mantra of openness, interoperability and security, has much to offer to ecosystem partners.”
Snehashish Chatterjee, Vice President, Advario S.E.A., said “Advario is proud to be an integral part of providing reliable and trusted data via SGTraDex’s data sharing infrastructure in order to facilitate the secure and seamless trade of commodities. We look forward to developing this offering with key partners such as Trafigura and Standard Chartered and the wider industry.”
This successful transaction marks a major milestone in bringing actionable solutions to the ecosystem and will further boost Singapore’s status as a key global and regional trade hub.
For further information please contact:
Trafigura Press Office: +41 (0) 22 592 4528 or firstname.lastname@example.org
Rui Sin Ng, Ruder Finn Asia: +65 9697 0007 or email@example.com
Standard Chartered Bank
Sheena Yu: +65 9723 9238 or Sheena.Yu@sc.com
Christina Soon: +65 8163 5954 or Christina.Soon@sc.com
Alvin Teu: +65 8748 7900 or Alvin.Teu@sgtradex.com
Allan Goh: +65 96394156 or firstname.lastname@example.org
Notes to editors
Founded in 1993, Trafigura is one of the largest physical commodities trading groups in the world. At the heart of global supply, Trafigura connects the world with the vital resources it needs. Through our Oil & Petroleum Products, Metals & Minerals, and Power & Renewables divisions, we deploy infrastructure, skills and a global network to move commodities from where they are plentiful to where they are needed most, forming strong relationships that make supply chains more efficient, secure and sustainable.
Trafigura also owns and operates a number of industrial assets including global multi-metals producer Nyrstar and fuel storage and distribution company Puma Energy; and joint ventures Impala Terminals, a port and logistics provider, and Nala Renewables, a power and renewable energy investment and development platform. Trafigura is owned by its employees and employs over 13,000 people working in 48 countries.
Standard Chartered Singapore
Standard Chartered Bank in Singapore is part of a leading international banking group, with a presence in 59 of the world’s most dynamic markets for more than 160 years and serving clients in a further 83. Our purpose is to drive commerce and prosperity through our unique diversity, and our heritage and values are expressed in our brand promise, here for good.
The Bank has a history of 163 years in Singapore, where we opened our first branch in 1859. In October 1999, we were among the first international banks to receive a Qualifying Full Bank (QFB) licence, an endorsement of the Group's long-standing commitment to our business in the country.
Singapore is home to the majority of our global business leadership, our technology operations, as well as SC Ventures, our innovation hub. In 2013, the Bank transferred our Singapore Retail and SME businesses to a locally-incorporated subsidiary, Standard Chartered Bank (Singapore) Limited ("SCBSL"). And in May 2019, we fully consolidated our business operations in Singapore through the transfer of our Commercial Banking, Corporate & Institutional Banking and Private Banking businesses to SCBSL. SCBSL is one of the highest-rated banks globally: A1/Stable by Moody’s Investor Services, A/Stable by Standard & Poor’s and A/Stable by Fitch Ratings. In August 2020, we were the first and only bank to be awarded the “Significantly Rooted Foreign Bank” (SRFB) status by the Monetary Authority of Singapore. In December 2020, we were granted enhanced SRFB privileges, in recognition of the significantly higher degree of rootedness exceeding the SRFB baseline criteria.
In Singapore, we support both individual and corporate needs to build wealth and drive commerce at every step of their journey. We do this by offering an entire range of financial services across personal, priority and private banking as well as our business, and corporate, commercial & institutional banking teams. The Bank has a network of 13 branches, including 4 Priority Banking centres, 1 International Banking and Priority Private Centre and 23 ATMs.
Launched on 1 June 2022, the Singapore Trade Data Exchange (SGTraDex) is a digital utility that facilitates the sharing of data between supply chain ecosystem partners, streamlining information flows through a common data highway where data can be shared in a trusted, secure and inclusive manner.
SGTraDex uses proprietary technology anchored through a public-private partnership model to resolve pain points in supply chain ecosystems including a heavy reliance on a paper-based system which lacks efficiency, transparency and sustainability. The move to digitise information will increase productivity and build supply chain resilience. New efficiencies and opportunities will be unlocked when ecosystem partners can collaborate to achieve a shared visibility of the end-to-end supply chain.
Advario is a leading global player in the storage industry, with a focused growth strategy on chemicals, gas and new energy and a strong commitment to embed ESG and sustainability across its entire operations. Advario is a carve-out of Oiltanking GmbH and is committed to play a frontrunner role in the energy transition through developing transformational partnerships. Advario is headquartered in Rotterdam and operates 13 terminals in Europe, China, Singapore, Middle East and the United States, with a total storage capacity of 8 million cbm. The company takes a focused and collaborative approach, together with its partners, to find storage and logistics solutions in the energy and chemical industry. Building on 50 years’ family-owned business history, Advario consists of a team of 1200 inventive, solutions driven storage experts who apply leading industry expertise and experience to terminal operations as well as new project delivery. Advario operates as a 100% subsidiary of Oiltanking GmbH.