Refined Petroleum Products Import Finance into Africa
Refined Petroleum Products Import Finance into Africa — STCF Arranger
We act as arranger. We do not lend our own balance sheet and we do not trade product. Our mandate is to structure bankable import flows for diesel, gasoline, jet, LPG, and fuel oil into African markets, then run a controlled term sheet auction among credible lenders. We focus on short tenor working capital secured by title, storage, and receivables exits. Expect tight controls and straight answers.
Where: Sub-Saharan Africa and North Africa with compliant storage and documentation.
Tenor: 30 to 180 days. Typical ticket: USD 2 million to USD 100 million per shipment or tranche.
1) STCF Toolkit We Deploy
| Structure | Use Case | Risk Controls |
|---|---|---|
| UPAS Letter of Credit | Supplier paid at sight by confirming bank, importer repays at usance | UCP600 rules, confirmed LC, controlled title, repayment from assigned collections |
| SBLC-Backed Payment Undertaking | Payment guarantee to back open account or deferred payment with reputable bank risk | Standby from acceptable bank, hard expiry, draw conditions linked to invoice and transport docs |
| Inventory Repo or Title-Transfer Finance | Lender takes title in tank or bonded storage, sells back as offtake pays | Collateral Management Agreement, tank receipts, independent stock monitoring, DvP release |
| Borrowing Base Line on Program Flows | Rolling imports with availability against eligible inventory and receivables | Advance rates with reserves, lockbox, weekly BB certificates, field checks |
| Confirmed Payables Program for OMCs | Distributors get supplier terms funded by bank against assigned proceeds | Assignment of receivables, eligibility rules, concentration caps per dealer |
2) Eligibility
- Importer or distributor with at least 24 months of verifiable trading and clean compliance checks.
- Storage access at named terminals with valid throughput and storage agreements.
- Identifiable offtakers with documented terms and a provable collections track record.
- Ability to ring-fence proceeds through assigned accounts. Where FX controls exist, workable repatriation path is required.
- Full KYC, AML, and sanctions screening for all parties and vessels used.
3) Indicative Terms
| Item | Term | Notes |
|---|---|---|
| Facility Type | Transactional STCF or revolving program secured by inventory and receivables | UPAS LC, SBLC-backed terms, or repo mechanics as appropriate |
| Tenor | 30 to 180 days per tranche | Aligned to voyage, discharge, and sell-through |
| Ticket Size | USD 2,000,000 to USD 100,000,000 per shipment or availability block | Larger programs by syndication |
| Advance Rates | Inventory 70% to 85% in tank; receivables 75% to 90% eligible | Reserves for taxes, duties, demurrage, and quality claims |
| Pricing | Floating base rate plus margin. Typical range: Prime + 1.75% to Prime + 3.50% | Interest charged on drawn amounts only. Base index may be Prime or SOFR per lender |
| Fees | Arrangement fee 0.75% to 1.50% to the lender; commitment fee 0 to 0.50% if capacity is reserved | Exact levels set by selected lender |
| Security | Title over goods, pledge of tank receipts or warehouse receipts, assignment of receivables and collection accounts, SBLC or LC as applicable | Collateral Management Agreement with recognized operator or monitor |
| Hedging | Optional price hedging linked to Platts assessments where lender requires it | Hedge documentation ring-fenced to the financed parcel or program |
| Covenants and Reporting | Weekly stock and sales report, borrowing base certificate, compliance with storage and insurance terms | Field checks and reconciliations on request |
| Events of Default | Non-payment, breach of controls, off-spec without cure, sanctions breach, diversion of proceeds | Remedies include stop release, enforcement over title, and sweep of assigned accounts |
| Governing Law | New York or English law for finance documents. Local security perfected where assets sit | Intercreditor where senior liens exist |
4) Process We Run
- Intake: cargo plan or rolling program, terminal details, offtaker list, licenses, and historical collections.
- Structuring: select the path UPAS, SBLC-backed terms, repo, or borrowing base and map controls.
- Underwriting: cash cycle, storage verification, eligibility rules, reserve model, KYC and sanctions.
- Auction: standardized package to aligned lenders. Comparable term sheets only.
- Selection and docs: lender chosen, confirmations obtained, security perfected, release mechanics tested.
- Activation: first shipment funded or first tranche opened. Weekly reporting starts.
5) Documents We Need
| Document | Purpose | Notes |
|---|---|---|
| Import licenses and regulatory permits | Legal eligibility to import and sell | Country specific requirements |
| Storage and throughput agreements | Control over stock and release points | Terminal operator contact and terms |
| Supply contracts and pricing formulae | CFR or FOB terms, Platts link, quality specs | Past shipments if available |
| Offtaker contracts and limits | Exit of financed stock into cash | Top 20 counterparties with terms |
| Insurance cover notes | Cargo and storage risks covered | Banks named as loss payee where required |
| Corporate KYC and sanctions checks | Compliance clearance for all parties and vessels | IDs, beneficial ownership, vessel IMO where applicable |
6) Fees Payable to Arranger
- Engagement fee: USD 15,000 to USD 45,000 at mandate signing. Covers underwriting, model, reserves, data room, and lender auction.
- Success fee: 2.00% of committed facility for a program, or 1.00% to 1.50% of financed cargo value for single-shipment transactions, payable at initial closing.
- Expenses: Third party costs at actuals. Legal, monitoring, and filings are for the borrower.
7) Illustrative Cargo Economics
Example only. 50,000 MT diesel at USD 850 per MT. Cargo value USD 42,500,000. Advance at 85% equals USD 36,125,000. Tenor 90 days. Pricing assumed at Prime + 2.25% with Prime set at 8.50% per annum for illustration, APR 10.75%. Estimated interest cost equals approximately USD 957,560 for the period. Storage, monitoring, and fees are additional. Numbers are indicative and finalized during underwriting.
Request an STCF Mandate
If you can evidence storage, real offtake, and clean compliance, we can run the process and secure competitive term sheets for your imports.
Request a ProposalWe are an arranger. We are not the lender and not a product supplier. All facilities are subject to lender credit approval, KYC, AML, and sanctions screening, execution of definitive documentation, and perfection of security. No promises on pricing or capacity before underwriting. We do not engage with off-platform side deals or discount schemes.
Get Started With Us
Submit Your Deal & Receive a Proposal Within 1-3 Working Days
Submit your deal using our secure intake form, and receive a quote within 1-3 business days. Existing clients can connect with their relationship manager through our secure web portal.
All submissions are
promptly reviewed, and all communications are conducted through the intake form or the client portal for a seamless and secure process.
Thank you for considering working with us. A nominal fee of US$500 is required upon completion of each form. This fee covers the time and effort we invest in reviewing your submission and crafting a thorough proposal. We receive numerous inquiries and prioritize those that carry this fee, ensuring serious applicants receive prompt attention.
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