Investec Provides Supply Chain Finance For Valency International as Sole Funder

Valency International is an integrated agricultural commodity trader and food manufacturer headquartered in Singapore. 

Initially established in 2007 to source raw ingredients such as cashew nuts, rice, sesame seeds, and other soft commodities, the business has evolved to become a global farm-gate-to-consumer operation that incorporates logistics, warehousing, processing plants, and, more recently, a retail brand for edible nuts. 

The company’s global footprint extends to 21 product categories across agricultural commodities, processed Agri products, Agri inputs, industrial chemicals and FMCG food products.

Valency International now distributes to 40 markets around the world, including the US, Europe and the Middle East, and is a significant supplier of raw cashew nuts and cashew nut kernels in Asia.

“This deal is significant for Investec as it is the first time the International Trade Finance team has acted as the sole lender in this type of transaction, having previously acted in a support role. We are pleased to have been able to achieve this with the great team at Valency,” explained Jared Pillay – International Trade Finance at Investec Corporate and Institutional Banking.

Agricultural trading and food manufacturing are capital-intensive industries with long cash conversion cycles, especially due to seasonality, storage, shipping, and payment delays. 

“The facility is an important source of funding for Valency that will assist with balance sheet management and optimising our working capital,” explained Praveen Kumar Jain, Co-Founder & Chairman at Valency International.

“This facility will allow us to settle accounts with suppliers early in the trade cycle and extend terms to our customers to absorb shipping times, which will help strengthen our value chain and deliver excellence at every step to meet the needs of our customers around the world.”

“Our ability to structure a supply chain finance deal like this as the sole funder demonstrates Investec’s willingness and ability to assist global companies with innovative and flexible financing structures to support operations and help them scale the business,” concluded Pillay.

Read more about this transaction here.

About Valency International

Valency International has established a sizeable global presence, with offices and operations in 22 countries and a passionate team of more than 2600 people. The company’s global footprint extends to 21 product categories across agricultural commodities, processed Agri products, Agri Inputs, Industrial Chemicals and FMCG food products. This global footprint enables the company to leverage its sourcing networks and provide customers with high-quality products that meet their specific needs. Valency works closely with all stakeholders to ensure its value chain is sustainable, and its carbon footprint minimal. The company is deeply committed to the welfare of its people and the communities where they work.

About Investec

Investec partners with private, institutional, and corporate clients, offering international banking, investment and wealth management services in two principal markets, South Africa and the UK, as well as certain other countries. The group was established in 1974 and currently has approximately 7,500+ employees. Investec has a dual listed company structure with listings on the London and Johannesburg Stock Exchanges. 

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