A Mumbai based steel importer, which was set up in 1980s, and is now amongst the reputed players in Stainless Steel utensils industry. Client is a leading player engaged in the manufacturing and exporting of kitchen utensils. With increasing demand, client wanted to expand production and was looking to import machinery for setting up an additional line. Given it was a capex import, the client desired longer tenor funding at competitive rates.
Myforexeye value addition:
The client was in discussion with their bank for term funding and also approached Myforexeye for advice with funding options available to them. During discussions, we assessed that the payment terms with supplier was a combination of advance payment & a large portion was at sight. The ‘at-sight’ portion was eligible for funding options and we explored buyers credit backed by SBLC, but faced lack of appetite from overseas lenders under this product. Given supplier was insisting on a sight LC, we proposed UPAS (Usance LC Payable at Sight) instead, to accommodate funding. Given the tenor, appetite was a challenge for most overseas lenders, however, Myforexeye was able to secure commitments from a couple of lenders at attractive pricing. We went with the best offer with an objective to assist the client in overall cost reduction as well. However, the supplier was resistant in accepting a UPAS LC when their payment terms was ‘at-sight’. Myforexeye team provided support to the client in their discussions with supplier and suggested that supplier should take opinion from their relationship bank to verify that their commercial interest was protected under this structure. This worked, and the supplier was supportive post receiving such an opinion from their bank on the LC.
The deal was closed with L+80 bps p.a. for 1080 days with annual LIBOR reset. Compared to INR term funding rates, Myforexeye was to help the client in saving hugely on the interest cost. Since then, the client has also partnered with us for forex advisory needs.
07 Sep 2019 03:03 PM
A large importer based in Delhi. The client had started a relationship with Myforexeye 6 months back. The client was getting extremely worried about persistent rupee weakness. Their import payment of USD 1 million was due for September 2019.
17 Aug 2019 05:53 PM
A South Indian Electric Vehicles manufacturer well known for selling battery operated two-wheelers. The company regularly imports various components required to assemble two-wheelers from different geographies of the world. Given the focus on green e
03 Aug 2019 02:13 PM
A Mumbai based X-Ray film importer with import turnover of INR 6 cr had to make an import payment of EUR 1,00,000 against the import of master rolls of x-ray film from Germany. The client deals with a PSU bank which has been charging card rate on all
20 Jul 2019 06:09 PM
A Surat based woven products’ manufacturer and exporter. The firm exports woven fabric, post bags, laminated bags, cement bags, and other industrial packaging products in the international market with an annual export turnover of INR 10 cr. The firm
29 Jun 2019 04:49 PM
Myforexeye has appointed ‘Referral Partners’ (RPs) across the country in order to bring users of foreign exchange closer to our technology platform. The Referral Partner in Kolkata referred close to 10 exporters and importers in last 1 month. Our tea
15 Jun 2019 05:00 PM
Case: A Delhi based leading export house engaged in the manufacturing and exporting of garments. The company has export receivables of around USD 100k – 150k each month. The company had an inward remittance of USD 15,000 recently for which the owner