IntaCapital Swiss - Case Study - Gold Dore Purchase

Gold Doré Purchase, (Bolivia, Brazil – Canada)

Proposal

Collateral Transfer Facility – Collateral Injection to Guarantee Gold purchases: Export / Import.

  • Brief : To obtain collateral that would Guarantee the clients’ suppliers for the payment of Gold export from Brazil to Canada.
  • Total Facility Requirement : € 31 million
Facility Obtained

European based Provider Group

  • Facility Secured : Collateral Transfer Facility of € 31 million & the issuance of Standby Letter of Credit
  • Annual Contract Fee : 5.25%
  • Term : 12 months / 1 year
  • Deposit against Contract Fee : € 310’000

A Canadian based trading company (holding licensed subsidiaries in Dubai) was successful in entering into a Gold Supply contract with several mining consortiums in Bolivia and Brazil. Our client would purchase the commodity and export it from South America to the UAE where it would be sold on pre-arranged sales contracts.

The commodity was sold to our client as Gold Doré bars (approximately 95% pure) and despatched to a well-known and trusted gold depository in Brazil, in readiness for export. Our client was required to place several payment guarantees with his suppliers, as well as a Standby Letter of Credit (SBLC) to guarantee future shipments and the underlying supply contract. Once those Guarantees were in-situ, our client would export the commodity to his utilities inside the UAE where it would be smelted and sold as Bullion.

IntaCapital Swiss were successful in assisting our clients negotiate the terms of their gold supply agreements (and indeed their gold sales agreements in the UAE) and the terms of shipment to co-ordinate with the funding of the guarantees required and the security used for raising the Standby Letter of Credit, underpinning their master supply contracts.

Stemming from our in-depth assistance and on-going support, our client now enjoys long-term relationships with his gold suppliers, buyers, his secure logistics firm and his funders, who continue to service his requirements on a revolving basis.

What is Collateral Transfer?

  • About Collateral Transfer

Discover the key elements about the ‘leasing’ of Bank Guarantees, also referred to as Collateral Transfer.

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  • Why Use Collateral Transfer?

Explore the benefits of using InterCapital Swiss’ Collateral Transfer Facilities for ‘leasing’ bank guarantees.

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  • Lines of Credit & Monetisation

All you need to know about raising Credit lines for Bank Guarantees, often referred to as monetising on Bank Guarantees.

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  • Why Use IntaCapital Swiss?

IntaCapital Swiss offer a wealth of knowledge and experience in finding simple solutions to complex financial issues.

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  • Facilities & Pricing

Learn more about our availability & pricing for our Collateral Transfer Agreements and what we cover.

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  • Frequently Asked Questions

Any questions about Collateral Transfer, Bank Guarantees or Letters of Standby Credit? Let us answer your questions…

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