Commodity Trade Invest Planning 2 Trade Finance Funds in Energy

Commodity Trade Invest LLC, a Geneva-based company started by former BNP Paribas SA bankers, plans two trade finance funds in oil products and steam coal.

It’s talking with a hedge fund to raise as much as $500 million that will provide short-term loans backed by commodities to traders of refined oil and bioenergy products and petrochemicals, Philippe Steiner, co-founder of CTI, said by e-mail on June 10. The assets targeted for the coal fund are as much as $100 million and probable investors are high net-worth individuals and family offices, he said.

Jacques Begle, former co-head of trade finance at BNP, and Steiner started CTI this year to help bridge a gap in loans for smaller commodity merchants after banks stepped up lending rules. Steiner was previously a relationship manager for commodity finance at BNP, according to the statement.

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