JPMorgan Leads Alliance To Provide Greensill Partner Taulia With $6 Billion In Financing

Taulia has landed an infusion of over $6 billion by an alliance headed up by J.P. Morgan, Reuters reported.

The group will encompass BBVA, UBS and UniCredit, Reuters reported, citing a statement from Taulia.

J.P. Morgan offered $3.8 billion of a credit facility that has a value in excess of $6 billion, an unnamed source told the newswire.

“Taulia’s priority, first and foremost, has been to enable businesses both large and small to unlock liquidity trapped in their supply chain in order to invest, operate and thrive,” Taulia CEO Cedric Bru noted in a statement, per Reuters.

Taulia, a Greensill technology partner, works with financial firms to let vendors that harness its technology get advances for merchandise and services that they have provided. The U.S. FinTech said per the report that the client facility would let its customers, which depended on Greensill funding in the past, have ongoing access to funding.

As PYMNTS previously reported, Switzerland’s Credit Suisse had to freeze four Luxembourg-based funds that invested $10 billion in supply chain finance, compounding the effect from the collapse of British upstart Greensill Capital. The second-biggest bank in Switzerland was a core source of funds for the upstart, which was co-founded by Lex Greensill and Jason Austin.

Credit Suisse is now having to take questions from insurers and watchdogs as it determines how to best contend with Greensill’s insolvency filing.

In an investor’s note, Credit Suisse announced the temporary suspension, stating that the board arrived at the decision that it would be too hard to set a correct price for the supply chain-linked shares kept by the four funds.

The impacted funds are Credit Suisse (Lux) Institutional Target Volatility Fund, Credit Suisse (Lux) Qatar Enhanced Short Duration Fund, Credit Suisse (Lux) Multi-Strategy Alternative Fund and Credit Suisse (Lux) Multi-Strategy Bond Fund.

In 2019, Moody’s Investors Service came to the conclusion that supply chain finance — also referred to as reverse factoring — could negatively impact liquidity.