Artis Finance Collapse - A Cautionary Tale of Deception in Global Trade Bond Markets

Artis Finance, a once-obscure non-bank lender based in London, is now at the centre of a financial scandal that's left global institutional investors nursing hundreds of millions in losses and regulators scrambling to respond.
At its core was a seemingly sophisticated trade finance operation. Artis lent money to mid-sized commodity traders-primarily in the UAE and Asia-against outstanding invoices. But what appeared to be prudent short-term lending was in fact a house of cards built on overstated loan quality, manipulated reports, and expired insurance coverage.
To fund its lending, Artis used a special purpose vehicle, Artis Loanco 1 PLC, to issue $260 million in bonds, sold to investors including CDPQ ($105m), Nuveen ($70m), Barings ($30m), and Insight Investment ($50m). Backed by trade receivables and rated BBB by KBRA, the notes were marketed as safe, investment-grade debt.
But that façade collapsed in March 2025 when Artis entered administration after it was revealed the company had fabricated key financial data. Servicing reports-used by bondholders to assess the quality of the underlying loan portfolio-had been falsified, masking the fact that 24% of loans were over 60 days past due, far above the default trigger threshold.
The overdue loans included $40m exposures to Alzys Global, Bluetag Holdings, Carrotrade Asia, and TMT UK, among others. Two trade credit insurance policies lapsed quietly, removing vital protection without disclosure to investors.
Following the revelations, KBRA downgraded and withdrew its ratings. PwC, appointed as administrator, is now conducting a forensic probe into what one investor described as "Greensil 2.0 in slow motion."
The scandal has ignited fresh concerns over the misuse of structured bond programmes by non-bank lenders, who exploit regulatory loopholes to raise funds against unverifiable trade receivables. These unregulated instruments often escape the scrutiny applied to conventional financial products-leaving bondholders exposed when things go wrong.
In Artis's case, the deception was systemic. The company continued issuing new notes while hiding growing loan distress, enabling what critics now describe as a form of financial engineering bordering on a Ponzi scheme.
"Trade bond programmes have become the perfect cover for toxic credit," said one market observer. "And Artis is only the latest example. Stemcor, Greensil, Credit Suisse-all of them followed the same playbook."
As PwC sifts through the wreckage, the Artis fallout is a warning that opaque bond structures, sold under the banner of trade finance, remain a ticking time bomb on global balance sheets.

Lilly Right
Investigative Reporter
61 Sandringham Road,
Golders Green,
London NW11 9DR

Lilly Right is an investigative journalist specializing in uncovering financial crimes, dedicated to exposing fraud and holding powerful institutions accountable.

This release was published on openPR.