Mizuho $126m credit to Radiant World was secured by allegedly invalid invoices, documents show

SINGAPORE — Mizuho Bank provided some US$100 million (S$126 million) in credit to Radiant World in June which was secured by invoices that a counterparty to the iron ore trader later said were invalid, according to documents and a source with direct knowledge of the matter.Radiant World did not respond to Reuters requests for comment on Friday.Details of the credit provided by Mizuho, the banking arm of Japan’s Mizuho Financial Group, have not previously been reported.A Mizuho spokesperson said it had no comment.The Mizuho financing was secured against invoices which purported to be for Radiant World iron ore sales to Glencore, correspondence seen by Reuters shows. However, Glencore told Mizuho in early August that it did not recognise the invoices, the documents show.Glencore, which had been a major counterparty to Radiant World, said in early August it had booked a provision on its exposure to it and on Friday said it had “stopped all business and exited all obligations” with the company.