Annona Supply Chain Finance SPV
The Annona Core Platform connects producers at origin with European specialty roasters through an integrated, financed supply chain. Investors access this structure through the ringfenced Supply Chain Finance SPV — a purpose-built vehicle at the centre of every transaction.
Indicative terms
- Target coupon
- 8.0% p.a.
- Cycle duration
- ~5 months
- Fund size
- USD 2.5M max
- Minimum
- On request
Indicative terms — the SPV is in development. Values reflect target fund structure and a 3-year backtest (48 containers simulated).
The model
A repurchase structure secured by physical coffee
The SPV provides financing to exporters through short-term repurchase agreements. At shipment, the SPV advances a fraction of the coffee's current C-market value — determined by the advance rate — and holds a security interest over the cargo for the duration of the transaction. The exporter retains economic ownership. When the coffee is sold to a roaster, the advance is repaid together with accrued repo interest, and the exporter receives the remaining proceeds including any specialty premium.
Exporter
Receives a cash advance at shipment, priced as a percentage of the C-market value — the advance rate. Retains economic ownership of the cargo throughout. At sale, receives the advance repayment plus the exporter's share of any specialty premium above the market price.
Annona Coffee
Acts as both consignment agent and SPV manager. Sources the coffee, manages relationships with exporters, and sells to specialty roasters. As SPV manager, Annona structures each transaction, monitors collateral, and operates the vehicle against a fixed management fee and a performance fee on returns above the investor coupon.
SPV — Investor vehicle
A bankruptcy-remote special purpose vehicle that provides the financing. Earns repo interest on each advance — accrued daily at an annualised repo rate — plus a per-transaction setup fee. After covering operating costs and building reserves, returns are distributed to investors according to the waterfall.
Transaction lifecycle
Collateral inspection
An independent collateral manager inspects the cargo at origin — confirming quality, quantity and warehouse position. No advance is released until inspection is complete.
Repo start
At shipment, the SPV advances the agreed fraction of the current C-market value. The repurchase agreement takes effect: the SPV holds a security interest over the cargo.
Afloat
The container is in marine transit. The advance accrues repo interest daily. Marine cargo insurance is in place for the full journey.
Warehouse arrival
The coffee arrives at a certified European warehouse. The collateral manager registers the position. Annona begins the sales process to specialty roasters.
Sale & settlement
Annona sells to a roaster. The repo unwinds: the advance plus accrued interest is repaid to the SPV, the specialty premium is shared between exporter and Annona, and the investor waterfall runs.
Collateral inspection
An independent collateral manager inspects the cargo at origin — confirming quality, quantity and warehouse position. No advance is released until inspection is complete.
Repo start
At shipment, the SPV advances the agreed fraction of the current C-market value. The repurchase agreement takes effect: the SPV holds a security interest over the cargo.
Afloat
The container is in marine transit. The advance accrues repo interest daily. Marine cargo insurance is in place for the full journey.
Warehouse arrival
The coffee arrives at a certified European warehouse. The collateral manager registers the position. Annona begins the sales process to specialty roasters.
Sale & settlement
Annona sells to a roaster. The repo unwinds: the advance plus accrued interest is repaid to the SPV, the specialty premium is shared between exporter and Annona, and the investor waterfall runs.
Distribution
Priority waterfall
Gross income from repo interest and setup fees is distributed in a strict priority order. Each layer is funded before the next receives any allocation.
Operating expenses
Day-to-day costs of running the SPV — legal, administration, custody and collateral management — are paid first.
Annona fixed fee
A fixed annual management fee, charged as a percentage of assets under management, payable to Annona Coffee for SPV management services.
Loss reserve contribution
A priority allocation to build and maintain the loss reserve at its target level — protecting investors against future credit losses.
Investor coupon
The target annual coupon payable to investors, accrued monthly on invested capital. This is the primary investor return and takes priority over all performance-based fees.
Performance fee
After the investor coupon is paid in full, Annona earns a performance fee on the surplus — aligning SPV manager incentives with investor outcomes.
Reserve top-up
Remaining income is used to bring the loss reserve and working capital buffer to their target levels before any extra distribution.
Extra dividend
Once all reserves are fully funded and all fees are settled, any residual income is available for distribution to investors as an extra dividend.
Performance Validation
Interactive Backtest
Explore a 3-year simulation (March 2023 – March 2026) with real C-market data, waterfall distributions, stress tests, and per-container analytics.
View Backtest →Interested in this model?
Get in touch
Reach out to Walter Hetterschijt directly to learn more about the SPV structure and investment opportunities.
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