Trade Finance Funding

Opportunities for Third-Party

Investors

SSCTF’s account with:

Transaction Highlights

- A method for third-party investors with surplus liquidity to obtain 6%-8% annualised yields via

secured, credit-insured, transactional finance

- Investors are able to select individual transactions to finance or provide discretionary guidelines

- Short duration and self-liquidating transactions mean that the WAL of investments can be managed to

between 30 and 90 days, ensuring that liquidity targets can be met

- Synthesis – Structured Commodity Trade Finance Limited provide back office, credit and advisory

services, keeping the workload for the investor to a minimum

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Structured trade finance is where a finance company funds a transaction on behalf of a third party. In our case we achieve this by directly purchasing the

goods from their supplier and then selling the goods directly to their purchaser, instantly removing a substantial portionof the credit risk.

The advantage for investors is that trade finance portfolios :

Strong Returns

Enhanced Security

Self-Liquidating

Low Default Rates

Have strong security

The funder generally has direct

ownership or a charge over the

assets being financed as well as

access to a Letter of Credit or Credit

Insurance

Are self-liquidating

Trade finance transactions are

typically 30-60 days so there is a

clear exit path for the funder. It also

allows funders to quickly reduce

exposure to borrowers, sectors and

geographies

Have low default rates

Historically, structured trade finance

transactions have very low default

rates and very strong recovery rates,

thanks tothe strong asset security

Have strong returns

Typically trade finance transactions

have very strong returns due to the

short tenor. By efficiently keeping

money deployed, this can be

converted to strong annualised

returns

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What is Structured Trade Finance?

$6 trillion

Despite global economic

uncertainty, international

trade continues to grow

SMEs continue to

globalise, moving their

goods in greater size,

across greater distances

However, as deliveries

take longer, SMEs turn to

trade finance to bridgethe

cashflow gap between

production and payment

According to the

International Chamber of

Commerce Report in2011,

default rates in trade

finance stood at around

0.02% - better than

investment gradebonds*

WTO Member

Exports peryear

>50%

SME share of that

trade

80%

Of theSME share

requires trade

finance

0.02%

Is thehistorical

default rate

Structured Trade Finance in numbers

* http://iccreport2015

Product TotalExposure($mio) Total DefaultedExposure ($mio) Exposure-weighted DefaultRate Transaction DefaultRate

ExportL/C 988,434 235 0.02% 0.01%

ImportL/C 1,656,528 1,210 0.07% 0.08%

Performance Guarantees 1,023,561 1,154 0.11% 0.17%

Loans forImport/Export 3,154,407 5,323 0.17% 0.22%

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Why is there an opportunity for investors in Structured Trade Finance?

Banks are reducing exposure due to :

--

-

High regulatory costs of capital

Out-dated technology and KYC infrastructure

A reluctance to lend on a transactional basis

The Global Financial Crisis created a gap

With banks less willing to lend to SMEs an opportunity has been created

for smaller, more nimble financial organisations to enter the market.

Using a combination of experience and understanding of global trade

flows, a new breed of trade finance houses is emerging who can lend

based upon assets, increasing security whilst maintaining strong returns.

With the phased implementation of Basel III and tighter lending criteria from banks, many SMEs have lost

access to the funding that they previously had.

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Strong

clientbase

B.

Strong

management

A.

C.

Strongbusiness

model

Synthesischooses

who to lend to

based on these

criteria

MARKETKNOWLEDGE

Our Strategy: How do we choose our clients?

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Here at Synthesis, a large part of our success within the group comes

from working exclusively with borrowers who have a strong track

record in their industry. We look for a minimum of three years of

successful trading by the management team and a strong business

model with good margins across their product range.

Underlyingasset

The underlying asset must be

something that we can take

control of, check the quality of and

re-sell if necessary. It is always

non-perishable

Credit Enhancement

The transactions that we finance

are always backed by a Letter of

Credit or Credit Insurance from an

investment grade counterparty

Loan-to-value

Typically we look at a “real”

valuation of the asset in terms of

what price it can be sold at in a

variety of jurisdictions

Monitoring

We ensure that our team is in a

position to monitor and exercise

control over the asset at any point

during the transaction.

Our Strategy: Deal Selection

In Structured Trade Finance the key to a successful portfolio is not just to choose the right

counterparties, but also to select the deals with the right characteristics. Each commodity has its

own idiosyncrasies, but in all transactions we seek verification of the value of the goods and will,

where possible, take a charge over the goods. In the event of non-payment, we would liquidate

the assets, hence our preference for non- perishable, generic commodities.

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Oil and Energy Products

Eg petrol, aviation fuel

With buoyant consumption of oil

products around the world and

long delivery times, there is

continual demand for funding

Agricultural Produce

Eg grains and beans

Agricultural goods are often

seasonal, which makes it harder

for small companies to raise

finance. Using our strong market

knowledge we can seek out

mutually beneficial arrangements.

Industrial commodities

Eg polymers, metals

Metals and polymers are businesses that

often have regular contracts that allowus

to remain well invested by continually

moving money from one contract to the

next

Semi-finished or finished goods

Eg genericpharmaceuticals

A proportion of our portfolio may

be used to finance non-

commodities as long as the

margins are strong and the

products are generic and liquid

Our Strategy: What goods do wefinance?

All of the goods that we finance are non-perishable and fungible, so that shipment delays do not accept the value of

the asset and we could, in an extreme situation, find a replacement buyer.

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Our Strategy: Risk Mitigationtors

Risk of non-payment

- Synthesis only lends to companies or management teams

with a significant track record in the relevant commodity

- Both the arranger of the deal and the debtor are required to

pass our KYC process

- Each transaction will have in place a Letter of Credit or Credit

Insurance to act as a safeguard

Risk of rejection of

goods

- Goods are checked for quality where necessary and certified

by an independent inspector before the transaction is funded

Country Risk

- In conjunction with leading trade finance law firm Watson

Farley & Williams, Synthesis – Structured Commodity Trade

Finance Limited continually monitors any potential risks, in

particular those relating to currency restrictions, sanctions or

embargoes

Commodity PriceRisk

- Synthesis – Structured Commodity Trade Finance Limited

does not engage in transactions where the return is in any

way linked to the price of the underlying goods. Each

transaction will have a sales contract at a pre-agreed price so

that the return is fixed

- In the event of non-payment by a borrower, Synthesis -

Structured Commodity Trade Finance Limited would first look

to enforce the terms of the contract. It would then seek to sell

the commodity to another buyer. It is only after that that they

would seek recovery through the Letter of Credit or Credit

Insurance. By concentrating on fungible, hard commodities,

the risk of depreciation of the asset is minimised

Risk of Documentary

Failure

- Facility Documentation is arranged by WFW and all

transactions are documented by experienced professionals

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Worked Example

Purchase cost of the goods : USD100

Contribution by the Client : USD10

Contribution by Synthesis :USD90

Sales Revenue of the goods :USD105

Returned to Synthesis : USD92

Returned to Client :USD13

Marine Insurance during transit : Typically

110% of purchase price (USD110) with

Synthesis as first loss payee

Credit Insurance before payment : Typically

90% of sale price (USD94.5) with Synthesis as

first loss payee (note our exposure is only

USD90)

RISK FACTOR RISK MITIGANT

✓ ABN AMRO Bank N.V. ✓ Industrial & Commercial Bank of China Limited

✓ Abu Dhabi Commercial Bank PJSC ✓ Industrial Bank of Korea

✓ Agricultural Bank of China Limited ✓ ING BankN.V.

✓ Australia and New Zealand Banking Group Limited ✓ JP Morgan Chase Bank N.A.

✓ Atradius Credit InsuranceN.V. ✓ Korea Development Bank

✓ Bank of ChinaLimited ✓ LloydsBank Plc

✓ Bank of Communications Co.,Ltd ✓ Lloyds of London Insurance Syndicates

✓ Bank of NovaScotia ✓ Malayan Banking Berhad

✓ Banque Cantonale Vaudoise ✓ National Australia BankLimited

✓ Barclays BankPlc ✓ National Bank of Abu Dhabi PJSC

✓ Bayerische Landesbank (BayernLB) ✓ National Bank of KuwaitS.A.K.P.

✓ BNPParibas ✓ Norddeutsche Landesbank Girozentrale

✓ China Construction Bank ✓ Oversea-Chinese Banking Corporation Limited

✓ CitibankN.A. ✓ Qatar National Bank S.A.Q.

✓ CofaceS.A. ✓ Royal Bank of Canada

✓ Coöperatieve Rabobank U.A. ✓ Santander UKplc

✓ Crédit AgricoleS.A. ✓ Skandinaviska Enskilda Banken AB

✓ Credit SuisseAG ✓ Société Générale S.A.

✓ CTBC Bank Co.,Ltd. ✓ Standard CharteredBank

✓ DBS BankLtd ✓ The Toronto-Dominion Bank

✓ Euler HermesS.A. ✓ UBSAG

✓ Export-Import Bank of Korea ✓ Unicredit Bank AustriaAG

✓ Garant VersicherungsAG ✓ United Overseas BankLimited

✓ Hang Seng BankLimited ✓ Wells Fargo BankN.A.

✓ HSBC BankPlc

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Credit Support Providers approved by Synthesis – Structured Commodity Trade Finance Limited

Unless specifically requested by the Investor, our transactions always receive either an LC or

credit insurance from one of the following banks or insurers, all of whom are investment grade :

The Investor

accepts or

rejects the

transaction

SSCTF monitors the

transaction

throughout,

controlling the flow

of goods and funds

Upon payment,

the SSCTFreturns

funds back to the

Investor

SSCTF sources

trade finance

transactions

within the

parameters of the

Investor

SSCTFpurchases

the goods upon

receipt of funds

and after all

necessary

inspections and

documentation

The Buyer is

invoiced by SSTCF

who then monitor

for repayment

Third-Party Investment Structure

SSCTF provides all of the legal and transactional structure, simply requiring the Third Party Investor to select

transactions to fund. This allows the investor to fund transactions based around their own liquidity and

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MEMBERS OF THE STRUCTURED TRADE FINANCE COMMITTEE OF SSCTF

Adrian Bell

Adrian is a UK national fluent in German and Russian, with 20 years' experience in the physical commodity space. Adrian has transformed, traded, hedged, financed,

transported, stored, trans-shipped and insured multifarious physical agri commodities with a focus on vegetable oils and, in particular, the sunflower complex. Having

lived in Germany and Russia as a student, Adrian lived in Odessa, Ukraine for 10 years, where he worked for a major local operator managing a sunflower crush and

importing palms and laurics for distribution throughout the CIS. Resident in Switzerland since 2006, Adrian worked for a while at Bunge Geneva on the MENA desk,

for whom he opened a rep office in Nairobi in 2010. From 2011-2015, Adrian was head of trading for the 2nd largest Ukrainian sunflower and soya bean crusher with a

700kmt annual vegoil book which he ran single-handedly from the group's Swiss office. Under Adrian's aegis, the group graduated from CPT port to FOB and CIF and

became the largest exporter of crude sunflower oil in bulk to China in the 2013-14 campaign. Adrian was a student of Modern and Medieval Languages at Queen’s

College, Cambridge, and graduated with a BA (Cantab) and an MA (Cantab).

Natalia Liebiedieva

Natalia has over 18 years’ experience within the banking industry in Ukraine, with a focus on corporate clients. She has extensive knowledge of complex financial

structures and products in the loan and debt sector, including in-depth experience of structured finance. Natalia started her career at Petrocommerce Bank Ukraine,

where she rose to Head of the Loan Division, Head of Corporate Banking and a Member of the Board. She has since held senior Board positions with BTA Bank,

Bank of Kiev Rus and Ukrgasbank. Natalia holds a diploma in International Affairs from the National Aviation University of Kiev, and a Senior Executive MBA from the

MIM-Kiev Business School.

Spyros Papadopoulos

Spyros has over 18 years’ experience in alternative investments. He began his career in Private Banking, first with Citigroup in London and Geneva, where he was the

key contributor to the development of both the Spanish and Greek Wealth Management Desks, and then with Société Générale in Athens, where he was instrumental

to the expansion of the Greek Private Banking division. Spyros resigned from Private Banking in 2006 to set up an asset management company for Deloitte, before

returning to London as Director of the hedge fund Absolute Return Partners. He left to found Synthesis in June 2009. His clients came through unscathed, and indeed

profited, from the crises of 2000-02 and 2007-present. Spyros holds the Investment Management Certificate of the CFA-Society of the UK.

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Our People

Disclaimer

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To the extent permitted by applicable law and regulation, Synthesis – Structured Commodity Trade Finance Limited and its affiliated companies expressly disclaims and excludes any and all liability that

may be based on this communication and the attached documents, any errors in it/them or omissions from it/them.