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Borrowers

The Barak Structured Trade Finance Fund provides businesses, traders and entrepreneurs with bespoke structured finance and working capital solutions to assist them in growing their business and creating ever-evolving opportunities.

Historically, Barak has provided shorter-term working capital financing given the global Emerging Markets and in particular African trade finance gap, however as we have grown over the last 9 years the financing offerings have grown to accommodate a host of needs across the continent.

 

Barak current funding activities

Although Barak has historically been primarily involved in agricultural activities in sub-Saharan Africa, this focus is shifting a wide range of commodity sectors to address where the highest opportunities lie. We have listed the current commodity sectors and countries making up Barak’s portfolio.

Commodity Sector Country
Metals South Africa
Equipment Zambia
Fertiliser Ghana
Petroleum Products Kenya
FMCG Tanzania
Coal Seychelles
Fruit & Raisins Mauritius
Minerals Zimbabwe
Juice Botswana
Pulses Uganda
Livestock Malawi
Vanilla Madagascar
Locomotives United Kingdom
Textiles Paraguay
Rice Other
Soya Democratic Republic of Congo
Sugar Jersey
Maize Mozambique
Nuts Benin
Sesame
Chemical
Cement
Veg Oil
Wheat
Sulphur
Sorghum

Barak In Africa

Ghana
Energy Generation, equipment, fuel, juice production.

Deal case study
Sector: Energy (Generators) & Power equipment
Background: Counterparty has grown into a globally recognised independent Power Producer (IPP). The business specialises in providing custom engineering turnkey distributed generation energy solutions for mines
Stock finance facility with following collateral structures:
• Loan Agreement between between the Borrower and Lender.
• Incoming LC with Barak noted as the Beneficiary.
• Cession of debtors

Zambia
Fertilizer, Petroleum Products, Equipment, Steel

Kenya
Fertilizer, Pulses (Pigeon Peas), Rice, Cement.

Mauritius
Coal, Locomotives, Vanilla.

Tanzania
Pulses (Pigeon Peas), Cashew Nuts, Rice, Fertilizer.

Madagascar
Vanilla.

Deal case study
Sector: Vanilla Farming
Background: Vanilla sourced from small scale farmers in Madagascar and shipped to buyers mainly in USA and Europe according to their specific quality, flavour and blending requirements.
• Preferred security interest over inventory
• Cession of debtors book and insurance policies
• Subordination of shareholders' loans.

South Africa
Metals & Minerals, Electronic Equipment, FMCG, Coal, Cement, Fruits & Raisins, Gypsum.

Deal case study
Sector: Mobile Handsets and Mobile Tablets
Background: Competitively priced Mobile Handsets & Tablets that perform functions of 'smart-devices'. Large global traders fill the off-taker role. Counterparty has grown significantly since Barak financing relationship.
Import stock finance facility with collateral structures:
• Stock under Purchase and repurchase agreement
• Cession of Asset Insurance with Barak's interests notice; insurance to cover warehouse and logistics
• Personal signed guarantees.

We believe that for Africa to continue to grow at the pace that has been seen historically, all entities with sound business models should be provided with a financial solution that is right for their needs, irrespective of the size of the company and the time-frame of required funding.

Barak launched its medium-term and longer-term Mikopo and Asha Funds to focus on the development financing requirements of its borrower base. This funding opportunity complements the full Barak suite, and although Barak recognises the importance of working capital trade financing in Africa, it also acknowledges that companies will look to expand operations down the line when the demand is realised.

The shorter-term funding includes an Impact Financing and Shariah-compliant Fund, with these products focusing on inventory and working capital cycles, which Barak advocates as the primary pillars of growth. We do not use a one-dimensional view when engaging with our borrowers – instead, the reviewing of all facets of business remain crucial to Barak’s sustainability.

The Pillars of Business which Barak focus on include:

Pillar of Business Barak Checklist
Track Record Performance
Financials Performance and Sustainability
Management Experience Sustainability
Industry References Compliance
Credibility of Contracts Compliance
Security behind deals and liquidity Collateral Management
Jurisdiction stability Performance
Financial Analysis of Off-take Agreements Performance
Currency Volatility Performance

Should you wish to apply for a line of funding from Barak, please do so by being in contact below and a member of the Barak Deal Origination Team will be in touch:

Apply for funding
southafrica-half

Case Study 1

Jurisdiction: Johannesburg, South Africa

  • Rice and beans importing business
  • Large Global trader fills the off taker role
  • Performs all rice packing for large Johannesburg Stock Exchange (JSE) companies
  • Agricultural, Rice
  • USD 5.1m Import stock finance facility with the following collateral structures:
  • Stock under Purchase and repurchase agreement
  • Cession of Debtors as per repurchase agreement
  • Personal signed guarantees
  • Opportunity to fund the company’s rice imports from various sources, predominantly India and Japan
  • Solid counterparty with local listed off takers, backed by underlying terminally priced commodity

The business is profitable, solvent and backed by a solid holding. There is sufficient collateral to cover the loan. We feel that this would be a good investment for Barak Fund Management.   Investment Advisor

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