We have a comprehensive commodities and commodity finance practice. We advise on a wide variety of commodity transactions and arrangements - including derivatives, commodity finance and physical trading - for a broad spectrum of market counterparties. Our clients include financial institutions, broker dealers, retail funds, hedge funds, trading funds, trading companies and corporates.
Our derivatives team advises on futures and other on-exchange transactions, as well as over-the-counter derivatives relating to a wide range of commodity underlying (including metals, petroleum, energy, freight and weather). We advise on a variety of commodity finance techniques, including precious and base metal loans, pre-pay transactions for metals, coal and oil and gas, pre-export facilities, and documentary and standby letters of credit issuance facilities.
The types of physical trading arrangements that we advise on include allocated and unallocated precious metals trading, metals leasing, and long-term off-take and purchase contracts for base metals, oil, gas and renewables. We also deal with shipping arrangements and insurance and documentary and standby letters of credit.
We have been ranked in Legal 500 UK 2014 for Commodities: Derivatives and our team has been described as 'building a strong offering across the trade and commodities space'.
Notable deals / highlights
Advising a ring dealing member of the LME on the impact of EMIR and the use of the FOA Clearing Module for exchange traded derivatives.
Advising on the establishment of a structured commodity investment vehicle for the provision of commodity backed and futures hedged repo finance arrangements.
Advising an AIM listed client, on a $175 million copper forward purchase transaction for a copper mine in Western Europe, with a US investment bank as the arranger.
Advising an AIM listed client on a $50 million reserve base facility for the development of oil and gas fields on the UK Continental Shelf.
Advising a commodity broker on sale and purchase agreements for shipments of biomass (in particular palm kernel shells from Nigeria).
Advising a Japanese trading company on a series of spot and forward sales of aluminium linked to LME prices and on their regulatory treatment.
- Advising a global commodities trading company on taking action against a defaulting Ecuadorian counterparty to OTC trades which had been entered into to allow the counterparty to hedge the risk of physical coffee trades between the parties.