A different approach to commodity transactions

There is a distinct difference between Digit Oil Limited and others in the provision of trade finance, because we are able to finance commodity transactions ourselves.

For example, in a typical transaction where the trading entity has both the seller and buyer locked in, but cannot finance the trade, Digit Oil can step in. First we do our due diligence on all parties involved. Once this has been satisfied, we issue a Joint Venture (JV) on an equitable profit share basis between Digit Oil and the trading entity. The buyer provides a purchase Letter of Credit (LC) to Digit, and once our bankers have accepted it, we give instructions to open the LC to the seller.

We have instruments and mechanisms in place to mitigate a range of risk levels, as we understand that different parties demand different levels of risk. And due to our global network of consumers and suppliers, we are in a position to align parties wishing to take advantage of pricing differentials in regions where there is a considerable disparity between demand and supply.