Mizuho Bank, a unit of Mizuho Financial Group, extended about $100 million in credit to Singapore-based iron ore trading company Radiant World in June, according to documents and people familiar with the matter. According to documents reviewed by Reuters, the financing was backed by invoices purportedly showing that Radiant had sold iron ore to mining giant Glencore, but Glencore told Mizuho in early August that it was not aware of these invoices. Glencore announced that it had booked a provision for its credit exposure to Radiant, and on the 11th said it had halted all dealings with the company and exited all debt relationships with it. Radiant said in a statement on July 31 that allegations it provided invalid invoices to raise financing were inaccurate and unfounded, and Singapore police disclosed last month that they had launched an investigation into the company. Mizuho has recently taken legal action against Radiant.
Mizuho Financial Group, Inc.Mizuho extended ~$100M credit to Radiant backed by invoices Glencore disavowed, and has now taken legal action against Radiant.
Glencore PLCGlencore booked a provision for its credit exposure to Radiant, halted all dealings, and exited all debt relationships after finding invoices it was unaware of.
