Energy Finance Provider of the Year
Since oil prices began to tumble in mid-2014, major upstream operators have been forced to cut capital spending and streamline their operations.
As a supply chain finance provider, Greensill Capital is at the forefront of this trend. The company recently partnered with Mexico's Pemex to implement the first Supply Chain Finance programme at a major national oil company.
To expand the project's reach, Greensill Capital collaborated with Nacional Financiera (Nafinsa), the Mexican development bank. Through Greensill Capital's ability to arrange funding from institutional investors and banking partners globally, the firm has been able to finance Pemex's entire vendor base. Consequently, the programme experienced huge demand from suppliers—over $3bn in annual spend.
Exploration and production companies have largely left supply chain finance as an untapped opportunity. The current challenging macroeconomic climate is changing that perception but working capital has been greatly undervalued. Payment extensions have put financial pressure on many suppliers.
Greensill Capital has instead shown the importance of introducing a supply chain programme. Projects such as its partnership with Pemex introduce much-needed liquidity to the sector and help companies to better understand the efficiency of their supply chain and vendor base.