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South Asia · Energy trading · Credit Enhancement & Risk Solutions · Recurring programme
Managing non-payment risk across recurring petroleum trade
An international petroleum trader required transaction-specific protection for recurring sales into a South Asian market during a period of significant foreign-currency and banking constraints. Brockport worked with the client and an institutional credit insurer to structure and manage protection across the programme.
US$240m+
Completed underlying petroleum trade supported by the risk programme.
Brockport structured and managed the credit-risk solution. The client’s pre-shipment financing was provided through its own financing relationships and was not arranged by Brockport.
The challenge
Recurring shipments, multiple issuing banks, constrained liquidity.
Petroleum shipments generated recurring payment exposures involving multiple local issuing banks. The client needed a structure capable of supporting repeated commercial transactions while assessing and allocating risk transaction by transaction.
Brockport’s role
Risk structuring and programme management.
Brockport structured and managed the credit-risk solution. Insurance capacity was provided by an institutional credit insurer. Pre-shipment financing was not arranged by Brockport.
01
Engage the institutional credit insurer.
02
Support structuring of transaction-specific non-payment protection.
03
Coordinate applications for individual transactions.
04
Assess and present issuing-bank exposures.
05
Support policy and transaction documentation.
06
Coordinate loss-payee arrangements where required.
07
Manage recurring transaction requirements throughout the programme.
The structure
Transaction-specific institutional non-payment protection.
Transaction-specific institutional non-payment protection was used across recurring petroleum trades involving multiple issuing-bank exposures.
International petroleum trader
Underlying trade and issuing-bank exposure
Brockport
Institutional credit insurer
The US$240m+ figure represents completed underlying petroleum trade supported by the programme, not financing arranged by Brockport. Client and insurer identities are anonymised in accordance with Brockport’s disclosure policy.
The outcome
US$240m+ of completed underlying trade supported through the programme.
Across the engagement, more than US$240m of completed petroleum trades were processed within the programme. The recurring structure allowed individual trades and bank exposures to be considered within a broader institutional risk relationship.
Underlying completed trade
US$240m+
Sector
Petroleum and energy
Structure
Transaction-specific non-payment protection
Risk
Commercial, political and bank exposure
Region
South Asia
Brockport role
Risk structuring and programme management
Not in scope
Client pre-shipment financing
Status
Completed recurring programme
Related transactions
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South Asia · Energy trading · Recurring programme
Managing non-payment risk across recurring petroleum trade
US$240m+
Completed underlying petroleum trade supported by the risk programme.
Brockport structured and managed the credit-risk solution. The client’s pre-shipment financing was provided through its own financing relationships and was not arranged by Brockport.
The challenge
Recurring shipments, multiple issuing banks, constrained liquidity.
Recurring shipments generated payment exposures across multiple local issuing banks. The client needed a structure supporting repeated transactions while allocating risk transaction by transaction.
Brockport’s role
Risk structuring and programme management.
01
Engage the institutional credit insurer.
02
Support structuring of transaction-specific non-payment protection.
03
Coordinate applications for individual transactions.
04
Assess and present issuing-bank exposures.
05
Support policy and transaction documentation.
06
Coordinate loss-payee arrangements where required.
07
Manage recurring transaction requirements throughout the programme.
Brockport structured and managed the credit-risk solution. Insurance capacity was provided by an institutional credit insurer. Pre-shipment financing was not arranged by Brockport.
The structure
Transaction-specific institutional non-payment protection.
Transaction-specific institutional non-payment protection was used across recurring petroleum trades involving multiple issuing-bank exposures.
International petroleum trader
Underlying trade and issuing-bank exposure
Brockport
Institutional credit insurer
The US$240m+ figure represents completed underlying petroleum trade supported by the programme, not financing arranged by Brockport. Client and insurer identities are anonymised in accordance with Brockport’s disclosure policy.
The outcome
US$240m+ of completed underlying trade supported through the programme.
More than US$240m of completed petroleum trades were processed within the programme.
Underlying completed trade
US$240m+
Sector
Petroleum and energy
Structure
Transaction-specific non-payment protection
Risk
Commercial, political and bank exposure
Region
South Asia
Brockport role
Risk structuring and programme management
Not in scope
Client pre-shipment financing
Status
Completed recurring programme
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