A Nifty 50 group company - Trade Finance Service

A Nifty 50 group company - Trade Finance Service

15 Dec 2018 10:08 AM
 
Myforexeye Research Report

Case:

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.

 

 

 

 

 


Date : 15-Dec-2018