About Us
- KBEA Capital is a joint venture between KB Investments / Echo Aryes / GTO Global.
- Since 2018 we have been a leader in boutique capital funding. Our capital offerings have secured a variety of large industrial sized projects.
- Our strength is in finding solutions for projects that typically can be rejected by mainstream financial institutions.
- We have expertise in structuring back to back transactions which are traded in the physical commodity industry.
- We assess the transaction and can allocate a yield based facility with an equity upside for larger transactions.
- Total transactions funded: USD$1.56 Billion.
- We have many years of trade experience both globally and specifically in emerging markets.
Previous Case Study
Case Study 1: Enhancing Liquidity for Agricultural Commodity Trading
Background: AgriTrade Investments Inc., a company specializing in the trading of agricultural commodities like grains and pulses, faced challenges in maintaining liquidity due to the seasonal nature of agriculture and the long payment cycles common in the industry.
Solution: AgriTrade Inc. secured a flexible credit line from KBEA Capital as a third-party financier experienced in the agricultural sector. This credit line was specifically designed to provide working capital against the value of stored commodities or future harvest contracts, offering drawdown options as needed to cover purchasing costs before sales revenue was realized.
Outcome: With the additional liquidity, AgriTrade Inc. was able to capitalize on market opportunities by purchasing commodities at favorable prices during harvest season and selling them at higher prices later in the year. The credit line also allowed for smoother operation despite fluctuating cash flows, resulting in a 23% increase in trading volume and profitability within the first year.
Previous Case Study
Case Study 2: Supporting Metals and Mining Trade Financing
Background: BNQ Metals SA, involved in the trading of metals and minerals, faced challenges in funding the upfront costs associated with purchasing a new mining asset in South Africa. In addition the mining operations and securing large quantities of metals for trading the gap between paying suppliers and receiving payment from buyers put a strain on their cash flow. The asset was very profitable and mineable tonnage was way above the purchase price to purchase the Asset.
Solution: By partnering with KBEA Capital, BNQ Metals SA was provided with a credit line that offered flexible terms, allowing them to finance purchases of metals directly from mining companies. The credit facility was structured to align with the lifecycle of mining and trading operations, offering grace periods when necessary.
Outcome:The strategic financing solution enabled BNQ Metals SA to expand its operations, securing contracts with several new mining operations and increasing its trading volume by 40%. The credit line not only facilitated smoother operational cash flow but also bolstered BNQ Metals SA reputation as a reliable trading partner in the metals sector of South Africa. The purchase of the Asset was completed and the ongoing concern of the capital gains was enhanced.
Previous Case Study
Case Study 3: Financing Energy Commodities Trading Expansion
Background: WVL SG, a trader in the energy sector dealing with oil, natural gas, and coal, sought to expand its trading operations and take advantage of a niche fuel bunkering business in the Middle East. As an emerging market opportunity the idea and business case was sound and after a few successful trials they required to increase the volume of trade. The volatile nature of energy prices required quick access to capital to make timely purchases.
Solution: KBEA Capital issued a credit line to WVL SG bank in Singapore. This allowed WVL SG niche customized solution which was created for a quick expansion in liquidity. The credit line provided the necessary funds to secure energy commodities when prices were advantageous, using the purchased commodities as collateral.
Outcome: The flexible financing solution enabled WVL SG to enhance its market position significantly, increasing its transaction volumes by 53% and improving its profit margins.
Assessing Transactions
Assessment
In the dynamic landscape of commodity trading, securing finance hinges on the credibility and bankability of transactions. At KBEA Capital, we specialize in facilitating bankable transactions that unlock essential funding for your commodity deals. Our due diligence process is meticulously designed to ensure that every transaction meets the stringent criteria required by financial institutions and investors alike
We delve deep into the financial health, market position, and operational integrity of the parties involved, ensuring that all aspects of the commodity transaction are transparent, reliable, and compliant with international standards. Our approach encompasses a comprehensive assessment of the commodity's quality, origin, supply chain integrity, and the contractual obligations of all parties. By scrutinizing the legal framework, risk factors, and market dynamics, we prepare a robust dossier that highlights the transaction's viability, profitability, and adherence to ethical practices.
Our goal is to provide our clients and their financial partners with the confidence and security needed to proceed with funding decisions. Whether you're trading in metals, energy, agricultural products, or soft commodities, our due diligence reports are your gateway to securing the capital necessary to thrive in the competitive world of commodity trading KBEA Capital can secure the required capital and pave the way for your next bankable transaction, where opportunity meets meticulous preparation.