VCI Capital and Trade originates, finances and delivers physical commodities across Asia, and holds long-term equity in the businesses that produce them.
The contracting and treasury base: a neutral, well regulated jurisdiction with established commercial law, banking and arbitration for cross border trade.
Origin markets where the crop is grown, and consuming markets where the fuel is blended. We contract at both ends of that route.
A trading book that turns over against contract, and equity positions held for the long term. Each mandate informs the other.
We trade the physical commodity, finance the flow, and hold equity in the businesses that process it. Each activity informs the other two.
Upstream feedstock purchased at origin and delivered to the plant gate, and downstream renewable fuel lifted from the plant and placed with buyers. We take title, arrange freight and handling, and perform against contract at both ends.
Documentary credit and working capital structured around the physical flow, so that cargo, collateral and payment move in step. It is the discipline that allows a trading book to grow without outrunning its balance sheet.
As a holding company, VCI acquires and holds equity in operating businesses, listed and unlisted, on an owner-operator basis and over a long horizon.
We trade upstream feedstock and downstream renewable fuel. Wherever possible we contract both sides together, matched back to back between the planting country and the production plant.
Purchased at origin, in the countries where the crop is grown, rather than from an intermediary further down the line.
Lifted from the production plant under offtake, and placed with distributors and blenders in the consuming market.
Positions are structured back to back: an origin purchase matched against a plant offtake, so that the book carries the spread rather than the flat price. Contracting at both ends allows the full margin across the chain to be retained rather than distributed among intermediaries at each handover.
Trading provides a direct view of an industry: who is short, who pays, and which plants run well. Where that view identifies a business worth owning, we prefer to own it and to help operate it.
Equity in listed and unlisted companies. Whether a business is quoted is secondary; whether it earns its cost of capital is not.
Owner-operator. We take positions we are prepared to help run, through board representation, operating discipline and capital allocation, rather than passive holdings.
Long term. We underwrite to holding a business rather than to exiting it, and we allocate capital on that basis.
Agricultural processing, renewable fuels, energy and industrial assets, with a bias toward businesses already known to us through the physical trade.
Control or a significant minority, sized so that we can be useful to the business and properly represented in its governance.
Our own balance sheet and that of our shareholders. We invest proprietary capital and do not manage money on behalf of third parties.
Renewable fuel is a conversion business, and performance depends on control of each handover. Our trading activity sits at both ends of this chain; our investment activity stands behind the plant in the middle.
Feedstock is contracted from origin suppliers on arm's length terms, with quality, grade and delivery window agreed before shipment.
Cargo moves from origin to the plant gate under documentary trade terms, with ocean freight and inland handling arranged to a fixed schedule.
Feedstock and finished product are held under independent collateral management, with insurance cover and periodic stock audits.
Feedstock is converted into finished renewable fuel and tested against the specification the consuming market requires for blending.
Finished fuel is delivered under contract to distributors and blenders for placement in the consuming market's fuel pool.
VCI runs the trading book, holds the equity positions, and contracts with the production assets that convert what we trade.
The contracting entity. It runs the trading book, arranges the financing around it, and is the vehicle through which capital is raised and equity is held.
Long-term holdings in operating businesses, taken on an owner-operator basis and held on our own balance sheet. Positions are disclosed to counterparties, investors and regulators on request.
We contract with the plants that convert what we trade, through offtake, prepayment and, where appropriate, equity. Individual partners and contracts are identified on request.
Corporate structure, shareholdings and the contractual relationships behind each position are set out in our corporate documents and provided to counterparties, investors and regulators on request.
Suppliers, lenders and offtakers assess us before they contract with us. The following describes how we are organised to be assessed, and what we ask of the counterparties we trade with.
Trades are contracted through the Singapore company, with the legal entity, authorised signatories, governing law and dispute resolution identified in each contract before execution.
Suppliers, distributors and financing partners are screened for sanctions exposure, beneficial ownership and adverse findings before we contract, and are reviewed periodically thereafter.
Quality, quantity, inspection, title and risk transfer are specified on recognised industry terms before shipment, rather than negotiated after a dispute has arisen.
Payment is structured through documentary credit or terms agreed in advance, with credit limits established before exposure is taken rather than in response to it.
Cargo is insured in transit and, where stored, placed under independent collateral management with periodic inspection and stock audit.
Authority, reporting lines and approval limits are set at board level. Accounts are prepared for audit, and related party arrangements are documented on arm's length terms.
The team combines three kinds of experience. We describe the capability here rather than the individuals; board and management details are provided directly to counterparties, investors and regulators.
Two decades in Asian energy, covering plant operations, project delivery, product specification, and fuel ethanol and petrochemical sales. Experience of running the process, not only financing it.
Audit and tax trained financial control, including professional practice certification and internal control experience within multinational manufacturing.
Twenty five years of commodity trading, industrial investment and company building across Asia, spanning both physical flows and corporate transactions.
Across Asia, governments have moved renewable content in road fuel from an incentive to a requirement, and aviation is following the same path through sustainable aviation fuel. Demand set by regulation behaves differently from demand set by price, because it persists through weak margin years.
Meeting a blending requirement is a supply problem before it is anything else. It requires plants running to specification, and a feedstock chain able to supply them consistently through the year rather than in bursts.
We therefore operate at both ends of that problem: supplying the feedstock, lifting the fuel, and holding capital behind the capacity that converts one into the other.
A counterparty diligence pack is available on request. It typically comprises certificate of incorporation and corporate structure, beneficial ownership and director details, bank and trade references, financial information, and sanctions and compliance declarations.
Commercial terms, offtake arrangements and capacity are shared under confidentiality and to the extent our existing agreements permit.
All enquiries, whether commercial, counterparty or investment related, are directed to the trading desk in Singapore.
VCI Capital and Trade
Singapore
Feedstock supply, freight, offtake and counterparty enquiries
trade@vcisingapore.com