Swiss coffee trader Sucafina has announced it intends to digitise its trade finance operations to support a new US$500 million senior secured borrowing base facility.

The company said it would do that with the support of Komgo, the Swiss-based digital platform specialising in trade finance.

Komgo's platform includes functionality to manage all trade finance exchanges with multiple banks, including conventional and standby letters of credit (L/Cs), documentary collections, guarantees, and more.

Facility oversubscribed

Sucafina says it has successfully closed a 2-year sustainability-linked senior secured borrowing base facility, securing US$500 million.

Based on an initial launch size of US$400 million, Sucafina's new facility was significantly oversubscribed and subsequently upsized to US$500 million, with commitments received from a globally diverse group of 16 European, American and Asian banks.

ING Bank, which acted as sole bookrunner, coordinator and documentation agent in the syndication, will act as agent for the new facility and as security agent and overdraft bank via its Geneva Branch, which will work in close cooperation with Komgo.

Trade finance digitisation

Komgo aims to digitise trade finance operations using blockchain to improve efficiency and is currently focused on L/Cs, account receivables financing, and know-your-customer (KYC) processing.

The company then expects to broaden its focus to cover other trade finance offerings.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.