Finance Kager International Group

Managing Risk and Liquidity

At Kager International Group, managing risk and liquidity is at the core of our business operations. Our approach to risk management and financial stability has been instrumental in building long-term relationships within the financial sector and diversifying our banking partnerships. Today, we collaborate with over 75 leading global financial institutions, ensuring robust support for our trading and consultancy activities.

As we continue to expand our global footprint, we focus on establishing local partnerships tailored to our investments. For example, we have set up independent revolving credit facilities specifically for Asia and created borrowing bases in the Middle East and the Americas to finance our trading operations in these regions. This strategy has consistently enhanced our profitability and enabled us to increase credit lines, even during global financial crises. We maintain a culture of financial prudence, ensuring a strong liquidity position and optimal financing for our assets.

Managing Volatility

In the volatile world of commodities and energy trading, Kager International Group is committed to diligent risk management. We perform daily position monitoring and stress tests for extreme market movements, continuously assessing the size of our physical and hedge book and the associated liquidity needs.

To ensure we can respond to margin calls related to our paper positions (hedging our physical business), we utilize a variety of funding solutions. These include bilateral funding facilities, syndicated trade finance facilities, and syndicated revolving credit facilities. By maintaining constant dialogue with our global financing partners, we can adjust our available funding facilities to meet the evolving needs of our business.

Financing Types

Kager International Group employs a diverse range of financing solutions to support our operations and growth initiatives. Our financing strategies include:

Short-Term Transactional, Self-Liquidating, and Secured Credit Facilities

We use bilateral transactional credit lines and borrowing base financings to finance daily trade activities and meet our liquidity requirements. These facilities are self-liquidating, meaning they are directly repaid by the financed transaction, ensuring efficient and effective liquidity management.

Short-Term and Long-Term Unsecured Revolving Facilities

Our short-term and long-term unsecured revolving facilities, primarily in Asia and Europe, fund general corporate needs, bridge financing for new investments, and support certain asset classes. These facilities provide the flexibility needed to manage our operations and growth effectively.

Secured Term Debt Facilities

To meet specific long-term financing needs for fixed assets, we employ secured term debt facilities, including project finance, acquisition loans, and hybrid financing solutions. These facilities enable us to support significant investments and long-term projects essential for our business growth.

Conclusion

At Kager International Group, our commitment to innovative and prudent financial management ensures we remain at the forefront of the commodities and energy trading industry. Through strategic partnerships, diversified funding solutions, and robust risk management practices, we continue to drive growth and stability for our clients and stakeholders.