IntaCapital Swiss - Case Study - Indian Textile Manufacturer

Indian Textile Manufacturer, (subsidiary in Dubai).

Proposal

Collateral Transfer Facility – Collateral / Loan Security Only

  • Brief : To Secure and Guarantee an existing pre-approved commercial credit line
  • Total Facility Requirement : € 12 million
Facility Obtained

UAE based Provider Group

  • Facility Secured : Collateral Transfer Facility of € 12 million
  • Annual Contract Fee : 5.85%
  • Term : 36 months
  • Deposit against Contract Fee : € 250,000

An Indian textile manufacturer required additional security to release a pre-negotiated credit line with their existing offshore bankers. The additional borrowings were required for expansion of their distribution infrastructure in Dubai, where they had a relatively new but established sales network.

The client had been trading for only a few years but had a strong order book. The Facility successfully obtained by IntaCapital allowed them to receive investment from our UAE provider via the medium of a Demand Guarantee (Bank Guarantee) and was issued to their nominated recipient bank in Dubai. The recipient bank was associated to their subsidiary company in Dubai allowing the company to utilise the Guarantee as security for their Credit Line that they had pre-arranged themselves with their own bankers.

This transaction was a very typical type of credit enhancement proposal where the client did not hold suitable or adequate security to borrow from their existing bankers. Collateral Transfer assisted them to be successful by importing suitable loan security.

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