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SocGen to cutoff new credit for oil trading firms in APAC region after HLT collapse

14 May 2020

French bank Societe Generale (SocGen) is allegedly terminating any new financing to oil trading firms in the Asia Pacific region after a USD 240 million exposure to Hin Leong Trading’s financial catastrophe. 

It is also re-evaluating any future decisions in commodities financing within the APAC region following the international oil market crash and HLT filed for debt restructuring, according to a report by Bloomberg.

“Societe Generale doesn’t comment on market rumors but the bank reminds that Natural Resources financing is one of its core expertise,” the bank purportedly said in a statement. “Societe Generale will remain committed to the Trade Commodity Finance sector, including in Asia.”

SocGen reportedly published a loss in the first quarter of 2020 despite the bank allocating EUR 342 million (USD 372 million) as a buffer for risky transactions.

Apparently SocGen did not specify details on how the buffer fund went to bailing out ‘two fraud-related charges’, but added that it is likely more financing will be needed to bankroll those charges over the rest of the year.

Related: HSBC accuses Zenrock of fraudulent dealings, files for legal action amid credit concerns

Photo credit:
Chris Liverani on Unsplash
Published: 14 May, 2020

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