Author: IntaCapital Swiss

Proposal

Collateral Transfer Facility – Collateral Injection with Credit Line and ongoing support

• Brief : To obtain suitable collateral and secure a lender (or investor) to make available loan funds to the Client.
• Total Facility Requirement : € 18.5 million

Facility Obtained

European based Provider Group with Balkan based Lender

• Facility Secured : Collateral Transfer Facility of € 21 million with a secured credit line of €18.5 million
• Annual Contract Fee : 5.65%
• Term : 12 months (renewable up to 6 years)
• Deposit against Contract Fee : No Deposit was required as the company had long trading history and was financially strong.

A well established soft drinks manufacturer and distributor laid long-term plans to enter the European market with a range of soft and fruit based drinks using still and naturally sparking mineral waters. They employed IntaCapital to seek suitable partners and distribution networks in the East European and Balkan regions. This included seeking physical premises that included the necessity to locate and purchase an existing bottling plant that had a unique quality of mineral water. By employing our professional appraisal teams, we succeeded in securing premises that included land containing mineral water wells with naturally sparkling water. We also negotiated the necessary Government licences that enabled our client to operate the wells, plant and distribution.

IntaCapital were able to facilitate the necessary guarantees to secure the purchase of the plant and the development of it whilst the application for funding was being processed. IntaCapital were successful in securing a Collateral Transfer Facility for €21 million and arranged a private lending group to make available a credit line to the value of €18.5 million for up to a 6 year term.

The Company has operated successfully in their new premises with their new range of soft drinks and IntaCapital have already introduced them to several hotel groups and retailers who have entered into supply contracts with them. IntaCapital were pleased not only to assist our client obtain the finance they needed to expand in this region, but also to continue to support them by the introduction of new customers and ongoing assistance.

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.