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Trade Finance for Oil & Gas Company in the Downstream Sector
Comprehensive trade finance solutions, investor introductions, and due diligence support.
Duration: 18 months | Year: 2023
The Problem
A high-growth Oil & Gas company in Nigeria had just secured its import license but faced significant challenges:
- Negative cash flow with an urgent need for working capital through debt and equity financing.
- Lack of transparency and consistency in due diligence activities involving third parties.
- Operational complexities from diversification into investment banking and asset management, creating ongoing business development needs.
These issues threatened the company’s ability to optimize trade operations and scale its diversified business model.
The Solution
SWC provided multi-level support focusing on trade finance, investor relations, and risk management:
- Investor Introductions & Working Capital: Facilitated connections with investors, securing working capital for multiple Oil & Gas transactions.
- Due Diligence & Risk Mitigation: Conducted thorough due diligence on suppliers, offtakers, and stakeholders to ensure transaction transparency and minimize risk.
- Dispute Resolution & Reconciliations: Managed disputes and reconciliations across transactions, leading to significant cost optimizations.
- Ongoing Business Development: Supported the company’s diversification strategy, aligning financing and business development efforts across its broader portfolio.
The Impact
Through SWC’s 18-month engagement, the Oil & Gas company achieved:
- Secured working capital that strengthened its downstream operations.
- Enhanced due diligence processes that reduced risk exposure.
- Improved stakeholder relations through effective dispute resolutions.
- Optimized trade operations leading to better cash flow management.
These strategic interventions not only stabilized the company’s Oil & Gas operations but also positioned its diversified ventures for long-term growth.
The Story
When SWC first engaged with the company, it was navigating the complex trade finance landscape without adequate structures for transparency and investor engagement. SWC’s approach prioritized immediate working capital needs while setting up robust due diligence protocols.
The most significant shift came from streamlining trade operations and ensuring all stakeholders were properly vetted. This minimized transaction risks and built trust with investors. Dispute resolutions on key transactions led to cost savings, directly impacting the company’s bottom line.
SWC’s continued involvement also supported the company’s broader business development goals, helping them align financial strategies across their Oil & Gas, investment banking, and asset management verticals
The Investment
SWC’s comprehensive advisory services provided this Oil & Gas company with:
- Strategic investor introductions.
- Optimized trade finance structures.
- Robust due diligence frameworks.
- Business development support across diversified services.
These efforts secured essential working capital and streamlined operations, setting the company on a path for sustainable growth.
