Standard Chartered, Trafigura and Advario have completed their first live electronic oil inventory financing via the Singapore Trade Data Exchange (SGTraDex).
Launched in June this year, SGTraDex is a common data infrastructure designed to ‘facilitate trusted and secure data sharing across supply chains’.
Standard Chartered provided the financing to Trafigura for its oil inventory which was stored by Advario. The energy storage company also provided the key data elements that enabled the execution of the trade electronically via SGTraDex.
The paperless transaction was executed using Standard Chartered’s Structured Inventory Product (SIP).
Standard Chartered obtained title of the oil from Trafigura before selling it back within a pre-agreed timeframe.
Documents of transactions conducted on SGTraDex are verified using the TradeTrust framework and distributed ledger technology.
In a statement sent to Bunkerspot today (6 September), Trafigura said that using the SGTraDex data-sharing connection ‘ensures that timely and immutable inventory information is passed from the terminal to the bank without any risk of tampering or alteration’. The commodity trader added that the successful conclusion of this transaction ‘demonstrates the viability of electronic oil inventory financing in reducing the risks of double-financing and thereby helping to facilitate greater funds accessibility for a wider pool of traders’.
Stephan Jansma, Chief Financial Officer, Asia Pacific, Trafigura, commented: ‘Trafigura is pleased to take a leading role in the digital transformation of commodity trade flows, together with Standard Chartered, one of our key banking partners, Advario and SGTraDex. We are working towards SGTraDex becoming a regular feature in the financing of our inventories in Singapore and other import and export flows.’
Snehashish Chatterjee, Vice President, Advario S.E.A., said: ‘Advario is proud to be an integral part of providing reliable and trusted data via SGTraDex’s data sharing infrastructure in order to facilitate the secure and seamless trade of commodities. We look forward to developing this offering with key partners such as Trafigura and Standard Chartered and the wider industry.’