We are excited to announce the successful implementation of an iron ore inventory finance deal using ICE CargoDocs electronic bills of lading (eBLs), marking a significant milestone in trade and trade finance operations. This groundbreaking transaction involved Vale, acting as borrower, and DBS Bank Ltd, as lender.

Vale and DBS signed an agreement to finance the floating inventory of iron ore on its way from Brazil to the destination ports in China and Malaysia. Until maturity, the inventory financing was secured using a pool of eBLs transferred to DBS on ICE’s platform, as collateral. The entire documentation process was conducted online via ICE CargoDocs.

eBLs are digital versions of a document that represents legal proof of ownership of goods in transit. For the duration of the facility, the eBLs were processed electronically, thereby enabling secure and instantaneous exchange of these negotiable eDocs.

Utilizing ICE CargoDocs eBLs allowed for the document transfer to be completed seamlessly, streamlining operations, reducing processing times, and enhancing the security of the transaction. This digital approach not only optimized efficiency but also supported all parties’ commitment to sustainability by reducing paper usage.

Mike Zhang, Global Head of Metals and Mining, DBS, said: “This is an inaugural deal where the bank leveraged on eBLs to provide a borrowing base trade financing for our client. This collaboration with Vale and ICE showcases our commitment to developing innovative solutions that transit clients to digital transactions, thereby increasing efficiency and unlocking greater value.”

Bruno Sales, Financial Services General Manager at Vale, commented: “At Vale, we have been through a journey to increase digitalization of our processes and, with this transaction we optimize our iron ore inventory while, at the same time, we reinforce our commitment to electronic trade finance flows and adoption of eBLs with our financial stakeholders.”

Katerina Anagnostara, Director, Customer Success, ICE Digital Trade, added: “ICE worked closely with Vale and DBS in the materialization of this transaction. Use of eBLs as collateral is the next logical step in digitizing inventory finance operations for our ICE CargoDocs customers, and we are honored to be trusted by Vale and DBS to enable this digital trade milestone which unleashes incredible value for both borrowers and lenders.”