Sucden Financial Secures $100 Million Credit Line for Its “Organic Growth”

Sucden Financial, which offers multi-asset execution, clearing, and liquidity, has secured a $100 million revolving credit facility to enhance its financial stability and pursue its organic growth strategy.

Announced yesterday (Monday), the revolving credit facility for the company was arranged and coordinated by ING Bank and is equally supported by three other banks: Barclays Bank, China Construction Bank, and DBS Bank.

A Credit Card for Businesses

A revolving credit facility, or RCF, is a type of loan that allows a borrower to draw down, repay, and re-borrow funds up to a specified limit, as often as needed, during a set period. It's like a credit card for businesses.

The lender sets a maximum borrowing amount, and the borrower can withdraw funds at any time, as long as they stay within the limit. As amounts are repaid, they become available to borrow again. Interest is charged only on the borrowed amount and not on the full credit limit.

“This facility is a strong endorsement of Sucden Financial and reflects the growing scale and diversity of our business,” said Sucden Financial’s CEO, Marc Bailey, adding that it will help the company to support its clients and remain agile in a dynamic market environment.

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An Old but Growing Business

Sucden was established in 1973 and is a subsidiary of a leading soft commodity trading group. It provides its customers with trading services across multiple asset classes, including forex, metals, soft commodities, energy, equities, and financials. The UK’s Financial Conduct Authority-regulated company also offers multi-asset execution, clearing, and liquidity.

FinanceMagnates.com earlier reported that the company’s pre-tax profit for 2024 jumped by 54.6 per cent to £36.7 million on revenue of £85.2 million, which also rose by over 22 per cent. It also saw a 30 per cent increase in 2023 profits.

The company has a strong balance sheet with over $240 million in total net assets at the end of 2024.

Meanwhile, Sucden gained a new German licence as its operations in the country commenced from January this year. It also established a new branch in Singapore to strengthen its presence in the Asia-Pacific region, complementing its existing subsidiaries in Hong Kong and the United States.