Collateral has been used for hundreds of years to provide security against the possibility of payment default by the opposing party in trade.
In the modern banking industry collateral is mostly used in over the counter (OTC) trades.
Collateral management has however evolved rapidly over the last 15–20 years with increasing use of new technologies, competitive pressures in the institutional finance industry, and heightened counterparty risk from the wide use of derivatives, securitisation of asset pools, and leverage. As a result, collateral management is now a very complex process with interrelated functions involving multiple parties.
Collateral Management International Proprietary Limited (CMI) was established in 2008. The company is a 100% subsidiary of AFGRI, operating independently from AFGRI with its own brand, systems, people and communication lines.
CMI has grown into a world class provider of collateral management and monitoring services, providing services to most commercial banks and traders.
CMI operates across 13 African countries with its head office in Centurion, South Africa. It operates under the AFGRI group guidelines and values, as well as Corporate Governance guidelines. Being owned by AFGRI offer a substantial balance sheet and track record in commodity handling and storage activities throughout its more than 5.0 million tons of storage capacity supported by a strategic and operational role in SAFEX.
CMI employs the best people in the industry with appropriate knowledge in different areas, in order to enable them to provide world class professional risk management services.
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What we do:
CMI provides risk management services to financial institutions and insurers, as well as to commodity traders and farmers.
Our service disciplines:
• Collateral Management (cma)
• Stock Monitoring (sma)
• Commodity Storage Solutions (sa)
• Inspections and surveying
Financial Institutions:
CMI provides collateral management and monitoring services to banks or financiers to enable the bank to use a client’s commodity on site as collateral against loans or funding lines. CMI acts as custodian of the bank’s security (the stock or commodity on site) during the funding transaction to ensure integrity of the security. This helps banks or funders to finance transactions where other security is not feasible or available.
Insurers:
CMI works closely with insurers of stored commodity, to limit risk and by doing so create savings on premiums to clients.
Traders and Farmers:
CMI provides commodity traders and farmers with a finance tool to access stock based funding with banks, similar to a SAFEX facility where clients can access finance with SAFEX certificates as security. Traders and farmers use CMI as inspection and stock storage experts for existing storage facilities, to prevent losses on stock related risks.
Service portfolio commodities include:
| Maize |
| Wheat |
| Soya |
| Sorghum |
| Sunflower |
| Cotton |
| Fruits |
| Nuts |
| Raisins |
| Vegetable oil |
| Molasses |
| Rice |
| Fertilizers |
| Steel |
| Retail goods |
| Hard commodities |
| Brent oil and fuels |
CMI is operational in:
| South Africa |
| Mozambique |
| Switzerland |
| Nigeria |
| Ghana |
| Liberia |
| Angola |
| Tanzania |
| Rwanda |
| Uganda |
| Zambia |
| Zimbabwe |
| Benin |
| Cote d’lvoire |
Contact us:
Pieter Steenkamp
Tel: + 27 11 063 2473
Cell: + 27 82 770 7610
Email: pieter.steenkamp@cmint.co.za
Klippie Marais
Tel: +27 11 063 2294
Cell: + 27 82 823 2958
Email: klippie.marais@cmint.co.za
Website: Collateral Management International
Address: 12 Byls Bridge Boulevard, Highveld Ext 73, Centurion