OakNorth, the digital bank for entrepreneurs, has officially entered the trade finance asset class by completing a $25 million loan-on-loan facility to Trade Finance Partners (TFP). This move represents a strategic expansion into specialist lending verticals and marks the bank’s first transaction in this sector.
Supporting cross-border trade and working capital
The facility is designed to support the continued scaling of TFP’s platform, which originates and structures short-term trade finance transactions across vital sectors such as energy, metals, and agriculture. The financing will be deployed toward short-term trade payables, helping international businesses manage working capital and fund the global movement of goods.
Trade finance is becoming a focal point for institutional capital due to its:
- Short-duration and self-liquidating structure
- Asset-backed security
- Strong risk-adjusted returns within the private credit market
Strategic partnership and expertise
TFP, an independent credit platform spun out from Trade Finance Global (TFG), benefits from an extensive origination network covering over 1,000 financial institutions globally. This partnership allows OakNorth to leverage TFP’s data-driven approach and disciplined underwriting.
Mohith Sondhi, Managing Director of Debt Finance at OakNorth, noted the significance of the deal:
“This transaction is an exciting milestone as we expand into new specialist finance verticals. In an increasingly volatile global environment, flexible and reliable finance for trade is more important than ever. TFP’s differentiated platform and fully insured structure presented a compelling opportunity for us.”
Robin Abrams, Chief Risk Officer at TFP, added:
“This facility reflects the increasing maturity of the market and the growing institutional demand for asset-backed exposure to global trade. Our partnership with OakNorth supports our expansion as we translate institutional capital into short-term finance across global markets.”
