FIS: Powering Glencore With Supply Chain Finance Solution

FIS has announced that it will be working with Glencore to support its trade receivables securitisation programme.

The FinTech company will be enabling real-time monitoring and transparency throughout the process.

This marks one of the largest oil and gas trade receivables transactions to have taken place.

Streamlining money moves

Global FinTech leader, FIS, has announced that Glencore PLC has selected its Supply Chain Finance Platform to support its operations. FIS has been helping businesses and institutions for more than 50 years, helping clients unlock new growth opportunities. Its technology helps cut through complexities in order to streamline how money is stored and moved across the supply chain.

Glencore is a trading and mining company, with one of the largest globally diversified natural resource portfolios. It primarily focuses on metals, minerals and energy products. Now, the company has selected FIS to support the company as it enters into the structured finance market for its oil and gas commodity.

Throughout the partnership, FIS will provide technological infrastructure, reporting capabilities and operation support throughout the trade receivables securitisation programme. This form of structured finance allows businesses to monetize large pools of receivables, which leads to liquidity. As it is a complex and multi-jurisdictional transaction, Glencore needs confidence that it can be supported in 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 worth US$2.55bn, marking one of the largest oil and gas trade receivables ever executed. It is backed by a group of six leading financial institutions and is a major step in how the commodity sector will take part in structured trade finance.

The FIS Supply Chain Finance Platform offers flexibility and functionality to the operation, with capabilities of delivering solutions at scale. Utilising a Microsoft Azure platform, it can set up deals, monitor portfolios and examine reporting. Through this, it can support businesses and their programmes of any size and industry. 

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.