$10MM Lithuania fertilizer trader - cash collateralized LC issuance
Summary:
Established in 2016 in Riga, Lithuania, the borrower is an international wholesale fertilizer trading company. Sourcing of fertilizer is mainly from Kazakhstan, Russia, Egypt, Turkey. End customers are in Malaysia, Bulgaria, Puerto Rico, Sweden, Egypt and others.
Facility is cash collateralized documentary LC issuance to the borrower’s suppliers. SEB is the LC issuing bank and requires an up-to-45 day cash deposit as collateral to issue the LC to the supplier.
This up-to-45 day cash deposit is the loan to be extended by the lender.
The facility is under a back-to-back LC structure in which the end customer is issuing a "Mother LC" to the borrower and the borrower is issuing an identical "Baby LC" to the supplier.
Industry:
Borrower Region:
Facility Type:
Facility Limit:
Deal Amount:
Deal Tenor:
Collateral:
HMX Co-Lend:
Pricing (%pa):
Status:
Fertilizer - sulphur, urea, phosphate
Lithuania
Cash collateralized LC issuance
$10 million
$3 - 5 million
20 - 45 days
Fertilizer product, assignment of proceeds
Yes
16%pa
Active