Refined Petroleum Trade Finance | FG Capital Advisors

Notice. Advisory services only. Not a lender. Facilities are subject to counterparty approvals, due diligence, KYC and AML, and definitive documentation. Information is indicative and may change without notice.

Refined Petroleum Products Trade Finance

What We Deliver

We structure and arrange trade finance facilities for refined petroleum products — diesel, gasoline, jet fuel, LPG, gasoil, VGO, and low sulfur fuel oil. Our scope covers credit enhancement, term sheet preparation, lender outreach, and documentation management through to first draw. Facilities are structured for traders, distributors, and offtake SPVs operating continuous import and distribution cycles.

Facility Spectrum

  • UPAS LC and deferred LC with discounting
  • SBLC and DLC issuance with confirmation and monetization
  • Borrowing base over inventory, receivables, and shipping documents
  • Prepayment and repo structures with cargo control and inspection
  • Receivables purchase, payables finance, and back-to-back LC chains
  • Gap financing for cash margin or demurrage exposure
  • Structured equity participation for working capital expansion

Facility Sizes and Coverage

  • Ticket size: 5 million to 250 million USD per borrower
  • Club or syndicate structures available for higher volumes
  • Regions: West and East Africa, MENA, Europe, LATAM, GCC, and South Asia
  • Eligible commodities: diesel, mogas, jet fuel, LPG, low sulfur fuel oil, condensates

Eligibility and Required Materials

Eligibility

  • Established supply and offtake relationships with verifiable performance
  • Terminal, tank, or pipeline access with operational logistics support
  • Audited trade data or pilot cycles with reconciled payment records
  • Governance, compliance framework, and clean sanctions profile

Required Materials

  • Trade flow summary including Incoterms, routes, and schedules
  • Pricing formulas, quality specs, and contractual structures
  • Financial statements, bank references, and hedging summary
  • Storage, insurance, and inspection documents

We issue a checklist and data room index at intake. Mandates proceed only once materials are complete.

Risk Controls and Execution

Risk Controls

  • Title transfer or pledge under collateral management agreement
  • Independent inspection and cargo control with warehouse receipts
  • Eligibility criteria and haircuts for inventory and receivables
  • Commodity and FX hedging protocols aligned to exposure tenor
  • Comprehensive KYC, AML, and sanctions screening

Execution Timeline

  • Week 1: mandate and documentation review
  • Weeks 2–3: data room, model, and term sheet preparation
  • Weeks 4–6: credit review, CPs, and documentation
  • Week 6: facility execution and first draw post-CP clearance

Sample Term Sheet (Illustrative)

Borrower Licensed petroleum trading company or offtake SPV
Facility Type UPAS LC with discounting and revolving borrowing base over inventory and receivables
Facility Size Up to 250,000,000 USD initial commitment, scalable via performance triggers
Tenor 364-day revolving; LC usance up to 120 days; shipment tenor up to 180 days
Pricing SOFR or EURIBOR + negotiated margin; issuance, confirmation, and discounting fees per schedule
Fees Arrangement and upfront fees at signing; commitment fee on undrawn balances; inspection and collateral fees pass-through
Collateral Title transfer over inventory, receivables assignment, escrow accounts, and inspection controls
Gap / Equity Layer Optional short-term gap financing for collateral or demurrage; structured equity for trade expansion
Covenants Minimum equity, borrowing base compliance, concentration limits, hedging obligations, and sanctions warranties
Conditions Precedent KYC and AML clearance, CMAs, insurance, legal opinions, and perfection of security
Governing Law England and Wales or New York, as agreed

This term sheet is indicative and non-binding. Final terms depend on credit assessment and counterparties.

Start Client Intake

Book a consultation or request a quote. We structure, underwrite, and distribute refined petroleum trade finance transactions across global markets.

Open Client Intake

Disclosures. We act as advisors, not lenders. All facilities depend on documentation, eligibility, and lender approvals. Fees and reimbursables are defined in the engagement letter. No representation or guarantee is made regarding timing or credit outcomes.