Deutsche Bank and KBC Group froze parts of Radiant World’s Singapore accounts, one of the world’s largest iron ore traders, citing concerns about the validity of invoices and documents submitted for trade financing. Major global miners Rio Tinto, Vale, and Glencore have halted new business with Radiant World, as have commodity trading houses Vitol and Cargill. Glencore took a provision for its exposure to the trader on August 5, calling the hit immaterial, while Intesa Sanpaolo booked a provision of approximately $230 million. Additional banks are already suspending credit lines to Radiant World, creating a cascading liquidity squeeze, with the market drawing parallels to the collapse of Hin Leong Trading in 2020.
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