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 transaction of around USD 1 Million for syndication with Myforexeye which included partial shipments of goods in 8 lots.
Myforexeye value addition:
Considering the risk and cost involved in the transaction, Myforexeye team approached overseas funding banks for the best rates possible for the transaction. Where most banks were charging L+ 50 bps p.a Plus USD 250 (given that other charges are applicable on each set/lot of documents), Myforexeye team arranged a pricing of L+55 bps p.a. plus USD 100 from a bank and was able to save USD 1100 ~ INR 78,100 approx. on the transaction. The LC was issued with the final arrangements and after a couple of days, the client disclosed the urgency of receiving the documents without getting it routed through the funding bank, as his shipment arrived early. Myforexeye team requested the funding bank through a request letter to authorize 2 lots of documents to be directly routed from beneficiary bank to Issuing bank. After taking necessary approvals from its headquarters, the funding bank authorized the direct delivery of 2 sets of documents as an exceptional case. The first 2 lots were received directly by the issuing bank, after which they were mailed to the Funding bank by the Issuing bank along with the acceptance of documents via SWIFT MT732. The remaining 6 sets of documents were successfully routed through Funding bank. Later on, a day before the due date of funding against the fifth set of document, the client requested Myforexeye team to hold further payments to the beneficiary as the goods received were not according to the terms of the contract. Being an LC payment, Myforexeye team suggested the client to send an intimation letter of the same to his Issuing bank, which in case will relay a SWIFT message to the funding bank for holding the payment. The payment was put on hold for 3 days after which the issue was resolved between the client and his supplier and all the payments were made on respective due dates to the beneficiary.
Myforexeye team was able to continually assist the client through all the stages of the multi-tiered transaction to its ultimate conclusion by timely coordination with the involved parties. In addition, it was done in a cost-effective manner to make funding cost reasonable. The client was happy with our service to syndicate a difficult transaction in a timely and cost-effective manner.
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