ING and Sucafina have collaborated with digital trade finance specialists, Komgo, to deploy the most-cutting edge version of the firm’s Digital Agent solution for syndicated borrowing base facilities.
Since 2021, ING has been at the forefront of digitalising borrowing base administration using Komgo solutions, further strengthening its role as Facility and Security Agent, a service it extends to more than 50 facilities globally.
Earlier iterations of the solution were applied to inventory reporting, then to account receivables, cash accounts and liabilities monitoring, to provide instant and reliable visibility of all collateral and utilisations.
SEE HOW THE FIRST DEPLOYMENT OF THE DIGITAL AGENT TRANSFORMED INVENTORY REPORTING FOR SUCAFINA AND THE LENDERS
The latest version, which went live on Sucafina’s flagship USD725mn borrowing base facility in September 2023, is set to transform the generation, approval and distribution of the Facility Report itself. These enhancements bring the solution to the next level of automation, transparency and security.
How does it work? The solution draws from raw data provided by Sucafina, including receivables and inventory data, along with other sources such as broker reports and ING balances, to instantly provide, in a very transparent manner, analytical views on all dimensions of the facility agreement: from caps, asset categories, concentration limits to insurance levels.
The Komgo Facility App module is configured to reflect the terms and conditions of the Facility Agreement, which are locked into the system from the outset. This increases security for lenders as the responsibility for preparing the report is transferred from the borrower to a trusted third-party agent, eliminating the risk of human error in calculations.
Moreover, a simple, digital workflow enables ING and Sucafina to review, approve and sign the report, which is made available to all lenders in the syndicate, together with a full reporting history and validation overview. Komgo subscribers can also access the data directly on the platform, providing them with enhanced visibility through a granular view. This deployment not only enables transparent and timely reporting for this facility, but also lays the foundation for a standardised and comparable reporting framework. This framework has the potential to scale-up, enhancing the efficiency and marketability of ING's end-to-end borrowing base desk.
"Sucafina's vision to be the leading, sustainable, farm-to-roaster coffee company in the world, is bringing technology and innovation as part of our DNA. Thanks to Komgo, we believe that this project will bring efficiency in the way we prepare and present our data, but also will improve the transparency and the global understanding of our activity.”
Valentin Levraux, Head Of Treasury
"For any solution to truly enhance our business, scalability is paramount. The coffee industry is inherently intricate, with numerous variables including diverse destinations, inventories, warehouses, and various limits and sub-limits. We intentionally began with a more complex facility, ensuring that it can be seamlessly expanded upon. Today, we are confident of its replicability and the value it can bring to our operations. Furthermore, it paves the way for future developments in terms of data analytics and presentation."
Jean-Guy Nodot, Head of Project Management
"At ING, we’re leading the market for syndicated borrowing base facilities, and are always looking to retain our competitive edge in this area. Our adoption of the Digital Agent solution has substantially improved access to critical information for all lenders, ensuring transparency and the simplification of monitoring and analysis. This enhancement significantly bolsters our appeal to potential investors.”
Louis Prieur, Senior Relationship Manager