SocGen Halts Funding to APAC Oil Trading Firms
Following the Hin Leong debacle, Societe Generale will now halt funding to oil trading companies in the Asia Pacific region.
Societe Generale is reportedly halting fresh funding to oil traders after being hit through its $240 million balance sheet exposure to the now disgraced Singapore oil trader Hin Leong. According to a «Bloomberg» report, the French lender is also reviewing its activities globally in light of the event.
«Societe Generale doesn’t comment on market rumors but the bank reminds that Natural Resources financing is one of its core expertise,» the lender said in a statement. «Societe Generale will remain committed to the Trade Commodity Finance sector, including in Asia.»
Hin Leong Scandal
Hin Leong – Singapore’s largest independent petroleum storage terminal – hid about $800 million in futures losses, its founder Lim Oon Kuin alleged after credit lines were pulled by banks. The firm is believed to have since filed for credit protection.
The oil trader reportedly owes around $4 billion to 23 banks including HSBC, the largest lender at $600 million, as well as DBS, OCBC, Bank of China, Societe Generale and Standard Chartered.
