DBS Bank structured and participated in a two-year pre-export structured trade advance facility amounting to USD 60 million to Uttam Galva Steel Netherlands DBS’ share was USD 20 million to finance its export advance/prepayment to Uttam Galva Steel Limited for the supply of steel products to be delivered over a 24 month period.

The structure gives UGSL more commercial flexibility since it can sell to a panel of offtakers instead of being tied to just one offtaker, thus enhancing the revenue possibilities. All proceeds payable by the offtakers are deposited into the collection account which is applied towards the liquidation of the loan.

Source - The Asset

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