Pre-export finance and prepayment finance

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Structured Trade Finance or Structured Commodity Finance (SCF) is a term used to encompass several different methods of finance for producers and traders of goods and commodities, including pre-export finance and prepayment finance.

Pre-export finance

Pre-export finance (PXF) is an established structure used to provide finance to producers of goods and commodities. PXF structures were borne out of the fact that, traditionally, many producers of goods and commodities, particularly in emerging markets, were not considered to be sufficiently bankable for the purposes of obtaining finance by more orthodox means, such as conventional corporate loans against the balance sheet of the borrower.

In a classic PXF facility, funds will be advanced by a lender or syndicate of lenders to producers to assist them in meeting either their working capital needs (for example, to cover the purchase of raw materials and costs associated with processing, storage and transport) or their capital investment needs (for example, investment in plant and machinery and other elements

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Banking and Finance weekly highlights—17 July 2025

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ISDA launches Notices Hub and protocol to streamline delivery of critical notices

The International Swaps and Derivatives Association (ISDA) has launched the ISDA Notices Hub and the ISDA 2025 Notices Hub Protocol to provide a digital alternative for delivering time-sensitive notices under the ISDA Master Agreement. The initiative is intended to support more efficient and reliable delivery of termination notices and waivers, particularly in circumstances where physical delivery may be delayed or impractical. The ISDA Notices Hub, developed in collaboration with S&P Global Market Intelligence, is a secure online platform that facilitates the exchange of critical notices and centralises address updates. The accompanying protocol enables firms to amend their documentation to allow use of the Hub, with 79 entities having adhered at launch. The platform is available at no cost to buy-side firms, with discounted access for dealers during the initial period. Features include automated notifications and a single-entry system for updating delivery details across agreements.

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