A Nifty 50 group company engaged in generation, transmission and distribution of electricity. To generate electricity, the company imports coal from overseas worth more than USD 10+ Million per month. Given the client was an experienced hand at arranging trade credits, client’s main requirement was competitive costing.
Myforexeye Value Addition:
Given the group’s size and scale, they have multiple banking arrangements with relationship with almost all the large banks. Client had access to best quotations in the market. The Client agreed to try Myforexeye for syndication of USD 4.1 Million transaction on a pilot basis. The LC needed to be opened on an urgent basis as the shipment had already happened. Working within this tight timeline, Myforexeye team reached out to multiple overseas lenders and was able to secure a competitive pricing of L+25 Bps p.a (plus handling charges of USD200). This was the finest quote the client had, however, the difference between the quotes offered by their key relationship bank and quote obtained by
Myforexeye wasn’t compelling enough. Client had to open the LC the coming Monday and it was already post market hours on Friday evening. Over the weekend, Myforexeye was able to secure a reduced pricing at L+20 Bps p.a from an overseas lender. The overseas lender provided clauses to be incorporated on Sunday and issued out the offer letter first thing on coming Monday allowing the client to make changes and get the LC issued on Monday itself.
The deal was closed at L+20 Bps p.a. The client was really happy with the service our team and has since then signed up with Myforexeye for future syndications.
13 Jun 2020 03:43 PM
A Tiruppur based fabric exporter had booked forwards expiring on May 29th, 2020 but due to lack of inward remittances, he had to roll over the forward contracts. The challenge encountered by him was the uncertainty in the Rupee spot price and the sev
05 Jun 2020 10:57 AM
A Delhi based metal importer had import payments of 3-4 million dollars scheduled every month. The client was getting extremely worried about the weakening rupee. The rupee has already depreciated 7.5% in 1.5 months. With growing uncertainties in the
19 May 2020 12:06 PM
A cloth exporter based out of Tirupur booked around $100,000 of export forwards per month. The client’s bank margin was fixed at 10 paise. The bank had been quoting a cash spot rate of 10 paise above the margin. The client had recently signed our “FX
16 Nov 2019 04:30 PM
Delhi based manufacturers of institutional and home furnishings, fabrics and hospital textiles exporter with market base across the country and other Asian and European nations. The client had recently started using our TPO service and had to book a
05 Oct 2019 05:30 PM
A Pune based industrial Instruments importer engaged in manufacturing of Electrical/ Instrumentation Systems. The client regularly avails import funding in foreign currency from Overseas branches of Indian Origin Banks. The client shared a transactio
21 Sep 2019 06:14 PM
A New Delhi based electronic goods importer. The working capital cycle of the client is 180 days but the Import payments terms are at sight against DP documents. The client used to utilize the Cash Credit facility with a PSU Bank. The client had appl