Glencore set aside $480 million over Radiant World exposure
What's new: The charge covers nearly all of Glencore's net exposure as the trader moves to exit remaining contracts.
Glencore set aside about $480 million against its exposure to iron ore trader Radiant World, effectively covering nearly all of its outstanding net risk to the company, people familiar with the matter said. The provision follows concerns that Radiant World provided falsified documents to banks, prompting several major commodity traders to cut ties. Radiant World owes Glencore $951 million, while Glencore owes Radiant World $471 million, figures also confirmed by people familiar with the matter. Earlier this month, Glencore said its exposure was well below its $500 million materiality threshold and that it had stopped new business and was trying to exit remaining contracts.