Investec helps Robust International fortify global supply chain

The Investec Corporate & Investment Bank team has partnered with Robust International to provide short-term working capital through a tailored bilateral trade finance solution to support its international supply chain.

Headquartered in Singapore, Robust International is a long-established, family-owned multinational food and agricultural products business focused on agro-commodity trading and processing.

The company evolved from a traditional trading house into an integrated supply chain operator, with a strong emphasis on local value addition, sustainable sourcing, and processing agricultural commodities from Africa and supplying end markets across the Middle East, Asia, Europe and the United States.

Its core product portfolio includes cashew nuts, sesame seeds, ginger and gum Arabic, with primary procurement concentrated in East and West Africa.

Operating in a sector characterised by long lead times between paying producers for raw materials and receiving payment from a global buyer after delivery, Robust International will leverage the facility to pay suppliers efficiently, manage cash flow across borders, and support business growth, including increased processing capacity.

“This structure is purpose-built for the modern complexities of commodity supply chains where value is increasingly created through local processing and logistics.

Our clients are evolving in this space, and understanding the corporate credit risk inherent in the structure provides greater flexibility than if we were looking solely at the commodities,” explains Jared Pillay, at Investec Corporate & Investment Bank, South Africa.

The transaction utilises a hybrid structure which includes elements of both payables and receivables financing, that allows Robust International to bridge funding requirements across key stages of its trade cycle, with particular focus on settling suppliers and optimising working capital during the voyage period, between shipment and final settlement from end customers.

According to Vishanth Narayan, Executive Director at Robust International, the facility is well suited to the company’s trading model and complements its integrated supply chain operations, which span procurement, processing and distribution across multiple global markets.

“The facility provides critical working capital to support our day-to-day trade cycles and enhance supply-chain efficiency, which will enable growth, resilience, and operational expansion,” explains Narayan.

“Investec’s partnership approach has ensured we have a tailored solution to meet our unique operational and cash-flow requirements, which are critical factors to the continued growth of our business,” he concludes.

About Robust International

Robust International Group is a closely managed multinational group operated by seasoned professionals who have years of extensive experience in international trading and management. Headquartered in Singapore with offices in more than 20 countries worldwide, Robust International has a vast global operational network that gives us the ability and scale to serve and satisfy all of our clients across the continents. The group’s strong focus and major presence in Asia, Africa and Europe gives us complete control over the procurement and sourcing of necessary raw materials in order to ensure that we always offer the highest level of service and efficient distribution to our global customer base. Robust International’s globe-spanning infrastructural capabilities combined with the ethical integrity, efficiency and customer-oriented approach that our employees integrate into all business dealings has allowed us to build strong and sustaining relationships with our suppliers and clients worldwide.

Read more about the transaction: https://www.investec.com/en_za/investec-for-corporates/transactions/robust-international-pte-limited.html