Important Disclosure. For corporate sponsors and accredited investors. Not a public offer. Local restrictions may apply. Prepared by FG Capital Advisors, August 2025.
Metals Repo Financing: Cu, Ni, Zn, Al
FG Capital Advisors arranges repo financing against exchange-grade metal inventory: copper, nickel, zinc, aluminum, and tin. Facilities are structured around title control, approved warehousing, and objective valuation against screen prices. The result is working capital that tracks inventory and price risk with clear margining and settlement.
What We Offer
Facility Types
Sale-and-repurchase structures or pledged borrowing bases over warehouse receipts. Draws against eligible lots held in approved warehouses with perfected security and controlled release.
Use Cases
Inventory finance near consumption hubs, carry trades, purchase-to-sale bridges, and refinancing of sight DLC proceeds into repo lines for tenor management.
Eligibility
Exchange-deliverable grade and brand lists; LME/COMEX/SHFE conforming lots; clean chain of title; insurance and storage contracts in place; KYC/AML cleared counterparties.
Minimum Facility
USD 10,000,000+ aggregate commitment. Below this level, bank economics and limits are rarely available.
Metals Coverage & Indicative Advance Rates
| Metal | Exchange Grade | Typical Advance Rate | Notes |
|---|---|---|---|
| Cu — Copper | LME Grade A Cathodes | 80%–88% | Haircut varies by storage location and brand list. |
| Ni — Nickel | LME Deliverable Briquettes/Cathodes | 75%–85% | Higher volatility can widen haircuts. |
| Zn — Zinc | LME Special High Grade | 78%–86% | Moisture/oxidation controls required. |
| Al — Aluminum | LME Good Delivery | 80%–90% | Popular for storage and carry structures. |
| Sn — Tin | LME Good Delivery | 70%–82% | Liquidity considerations impact advance. |
Advance rates are indicative. Final terms depend on lot quality, location, liquidity, price volatility, and counterparty profile.
How the Repo Works
Title or pledge is perfected over eligible lots. Valuation follows screen prices less agreed haircuts. Margin calls are triggered by mark-to-market moves and changes in eligibility.
Pricing Model
Rate
Benchmark (SOFR / EURIBOR) plus a spread applied to the funded portion. Storage, insurance, and handling are for borrower’s account.
Fees
Typical items include facility fee, drawdown fee, amendment charges, and legal/documentation costs. Bank fees are quoted alongside the rate grid.
Indicative Term Sheet
| Section | Key Terms |
|---|---|
| Borrower | Operating company or SPV acceptable to lenders, with KYC/AML approved. |
| Facility Type | Metals repo line (sale & repurchase) or secured borrowing base over warehouse receipts. |
| Facility Size | Minimum USD 10,000,000; scalable subject to limits, collateral, and performance. |
| Eligible Metals | Cu — copper; Ni — nickel; Zn — zinc; Al — aluminum; Sn — tin. LME/COMEX/SHFE conforming brands and lot specs. |
| Collateral & Control | Title transfer or first-ranking pledge over warehouse receipts; lender/agent control over release; approved warehouse list; tri-party control agreements. |
| Valuation | Daily mark-to-market to screen prices less agreed haircut by metal and location. FX conversion where applicable. |
| Advance Rates | As per approved grid (e.g., Cu 80–88%, Ni 75–85%, Al 80–90%) ; lender discretion based on volatility and liquidity. |
| Margining | Variation margin daily or as agreed; cash top-up or additional eligible lots within stated cure periods. |
| Tenor | 364-day revolving line with roll/extension by mutual agreement; transaction-level repos may run 30–180 days. |
| Pricing | Benchmark (SOFR / EURIBOR) + spread per the risk grid; storage and insurance for borrower’s account. |
| Use of Proceeds | Acquisition and carry of eligible metal inventory; refinancing of existing inventory finance. |
| Covenants | Inventory eligibility, reporting (positions, movements, valuations) , insurance, no junior liens, permitted disposals via controlled release only. |
| Conditions Precedent | Executed security and control agreements, warehouse undertakings, insurance endorsements, legal opinions, and satisfactory due diligence. |
| Events of Default | Non-payment, breach of covenants, ineligible collateral, insolvency, loss of control over inventory, sanctions or compliance breaches. |
| FG Capital Advisors Fees | Mandate/Retainer: USD 40,000–60,000 (non-refundable). Success Fee: 2.5%–3.0% of committed and funded amounts (standard 2.75%) ; payable at signing/first draw per mandate. |
| Lender/Bank Fees | Facility fee, draw fee, amendments, legal/documentation, warehouse and inspection costs; quoted with term sheet. |
| Governing Law | To be agreed based on collateral location and lender requirements. |
| Timeline | Complete file and confirmed warehouse arrangements: days; complex multi-site setups: weeks. |
| Confidentiality | Mutual NDA covering commercial terms, pricing, and counterparties. |
The term sheet above is indicative and subject to credit approval, collateral verification, and documentation.
Request Metals Repo Financing
Share your inventory profile, warehouse locations, and target facility size (Cu, Ni, Zn, Al, Sn). We will scope the lender group, confirm eligibility, and deliver a term sheet.
Start Your Trade Finance RequestFAQs
Which warehouses qualify?
Approved locations with recognized operators and reliable inventory controls. LME/COMEX/SHFE-linked sites are preferred.
Can the facility include off-exchange lots?
Case-by-case. Eligibility depends on brand acceptance, assay, and liquidity. Haircuts are adjusted accordingly.
How are price moves managed?
Daily mark-to-market against screen prices with variation margin. Hedging can be added outside the repo if required.
Do you arrange insurance?
Insurance must name lender/agent. We coordinate endorsements and limits during documentation.
Disclaimer. Facilities are subject to underwriting, KYC/AML, collateral eligibility, and documentation. Bank charges and third-party costs are separate from our fees.
