Unlocked working capital for a Kenyan fuel distributor
A leading petroleum distributor in Kenya with significant exposure to the power generation sector, specifically supplying fuel to a major Kenyan power plant. The client required enhanced working capital solutions to support business growth.
The client faced significant constraints in their working capital lines due to:
We arranged USD 25 million in trade credit insurance with an A-rated underwriter, structuring the policy to be assigned directly to the client's bank. This created a bank-friendly risk transfer mechanism that converted receivables into borrowing base.
Bank unlocked credit facilities against insured receivables
Client maintained consistent working capital
Continued reliable fuel supply to the power plant
Protected against customer default risk
This case demonstrates the power of simple, bank-friendly risk transfer solutions that convert receivables into borrowing base, enabling business growth while managing credit risk exposure effectively.
