Supply Chain Finance
In developmentAnnona 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.
Annona Core Platform
Where origin meets structured capital
Annona is the connective layer between seven distinct parties — from farms at origin to the investors who finance the chain. The platform orchestrates every step: collateral inspection, marine transit, certified warehousing, and structured settlement.
Producers
ORIGIN · COLLATERAL BASE
Exporters
CONSIGNMENT · OWNERSHIP
Shippers
MARINE TRANSIT
Warehousing
CERTIFIED · EUROPEAN
Collateral Mgrs
INDEPENDENT AUDIT
SPV
FINANCING VEHICLE
Financiers
CAPITAL · RETURNS
Buyers
ROASTERS · BUSINESSES
Annona
CORE PLATFORM
For investors
Real assets
Backed by physical coffee inventories and trade receivables — tangible, auditable positions at every stage of the value chain.
Short duration
Trade finance with typical 90–180 day turnaround. Capital is continuously recycled through new transactions.
Impact-driven
Direct financing of sustainable trade relationships with producers — measurable social and environmental impact.
Ringfenced structure
The SPV is a bankruptcy-remote special purpose vehicle — investor capital is ringfenced from the operating company.
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.
Parties
Three parties, one transaction
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
From inspection to sale
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.
Risk management
Built-in protection at every layer
LTV buffer
The advance covers only a fraction of market value. This overcollateralisation — the LTV buffer — means the C-market price must fall significantly before principal is at risk. The required price drop to create a loss is determined by the buffer size.
Exchange-traded collateral
The underlying is a liquid commodity traded on ICE Arabica futures. This provides continuous, transparent price discovery and allows collateral values to be monitored in real time against the advance price.
Loss reserve
A portion of gross interest income from each transaction is set aside into a fund-level loss reserve. This reserve absorbs realised losses before they reach investors, and is maintained at a target percentage of peak deployed capital.
Working capital buffer
A separate buffer provides operational liquidity for the SPV — covering expenses and fees in periods when transactions are slower to close, ensuring continuity without drawing on investor capital.
Active monitoring
Control at every phase of the transaction
Structural buffers protect the fund in the event of loss. Active monitoring ensures problems are identified and acted upon before they become losses.
Pre-Trade
Counterparty & lot selection
Each exporter undergoes due diligence covering trade history, volume capacity, and insurance coverage. Lots are screened against origin, grade, and ICE liquidity criteria before entering the facility.
Structural
Title retention & collateral control
Legal title to the coffee remains with the exporter until repo settlement. An independent collateral manager holds the warehouse receipt as security, ensuring the SPV's claim is enforceable at all times.
In Transit
Cargo insurance & shipment tracking
All shipments carry mandatory cargo insurance. Real-time tracking is monitored against the expected arrival date. Delays beyond a defined threshold trigger an automatic review.
Mark-to-Market
Daily price surveillance
The advance price is compared daily against the ICE Arabica front-month price. If the market moves against the position and the LTV threshold is breached, a margin review is initiated and — if unresolved — the collateral becomes eligible for liquidation.
Governance
Concentration limits & investor reporting
The portfolio is subject to per-exporter, per-origin, and per-currency concentration limits. Annona's performance fee creates direct alignment with investors. Quarterly reporting provides full transparency on deployed capital and risk exposures.
Pre-Trade
Counterparty & lot selection
Each exporter undergoes due diligence covering trade history, volume capacity, and insurance coverage. Lots are screened against origin, grade, and ICE liquidity criteria before entering the facility.
Structural
Title retention & collateral control
Legal title to the coffee remains with the exporter until repo settlement. An independent collateral manager holds the warehouse receipt as security, ensuring the SPV's claim is enforceable at all times.
In Transit
Cargo insurance & shipment tracking
All shipments carry mandatory cargo insurance. Real-time tracking is monitored against the expected arrival date. Delays beyond a defined threshold trigger an automatic review.
Mark-to-Market
Daily price surveillance
The advance price is compared daily against the ICE Arabica front-month price. If the market moves against the position and the LTV threshold is breached, a margin review is initiated and — if unresolved — the collateral becomes eligible for liquidation.
Governance
Concentration limits & investor reporting
The portfolio is subject to per-exporter, per-origin, and per-currency concentration limits. Annona's performance fee creates direct alignment with investors. Quarterly reporting provides full transparency on deployed capital and risk exposures.
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.
Interested in this model?
Reach out to Walter Hetterschijt directly to learn more about the SPV structure and investment opportunities.
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