FIS Finance Solution Powers Glencore' Supply Chain

FIS has revealed it is partnering with Glencore to support its trade receivables securitisation programme.

The fintech firm will provide real-time monitoring and enhanced transparency across the entire process.

The deal represents one of the largest trade receivables transactions in the oil and gas sector to date.

Streamlining money moves

With more than 50 years of experience, FIS has supported businesses and institutions in unlocking new growth opportunities, using its technology to cut through complexity and streamline how money is stored and moved across the supply chain.

Glencore, a trading and mining company, operates one of the world’s most diversified natural resource portfolios, with a primary focus on metals, minerals and energy products.

The company has now chosen FIS to support its entry into the structured finance market for its oil and gas commodities.

As part of the partnership, FIS will deliver technological infrastructure, reporting capabilities and operational support for the trade receivables securitisation programme.

This form of structured finance enables businesses to monetise large pools of receivables, improving liquidity.

Given the complexity and multi-jurisdictional nature of the transaction, Glencore requires the confidence of robust support as it takes this step.

“The size and scale of Glencore’s oil and gas trade securitisation exemplifies how the FIS Supply Chain Finance Platform enables sophisticated financial structures that optimise working capital for global enterprises,” says Steve Sabin, SVP, Lending at FIS.

“Our technology and expertise enable our clients to execute complex, cross-border receivables programs with confidence and transparency.

“By optimising the movement of capital across the money lifecycle, we are helping businesses like Glencore to unlock money at work through liquidity and drive growth in global markets.”

Simplicity in operations

Glencore’s oil and gas securitisation is valued at US$2.55bn, making it one of the largest oil and gas trade receivables transactions ever executed.

Backed by a group of six leading financial institutions, the deal represents a significant step forward in how the commodity sector engages with structured trade finance.

The FIS Supply Chain Finance Platform brings both flexibility and functionality to the operation, with the capability to deliver solutions at scale.

Built on Microsoft Azure, the platform enables deal setup, portfolio monitoring and detailed reporting.

In doing so, it supports businesses and their programmes across a wide range of sizes and industries.

The FIS platform offers simplistic capabilities for its clients, including:

• Seamless onboarding: The platform and its solutions can be deployed across multiple jurisdictions and counterparts, meaning that any company can onboard without difficulty, creating a streamlined workflow without delays
• Real-time monitoring: Stakeholders and business leaders can gain real-time insights and comprehensive visibility into operations, meaning there is a thorough understanding of performance and potential risk
• Automated regulatory reporting: Through this, the solution is constantly adhering to reporting requirements, throughout the entire facility lifecycle. This means the risk of mis-stepping is low and it reduces manual risks
• Scalable infrastructure: The platform supports the management and processing of a diversified portfolio of global trade receivables, meaning it can help companies of any size and demand

Through this partnership, FIS is helping Glencore gain confidence in its market operations.