Daily News: May 2, 2013

KTC Funds Trade Finance Solution to Dubai-Based Trading Company

King Trade Capital (KTC) announced the recent funding of a $5 million U.S. dollar trade finance facility for a Dubai-based and Isle of Man domiciled fuel trading company.

The client is a past KTC customer that grew sales from tens of millions to over $1 Billion in annual volume with an expertise in delivering fuel to Afghanistan.

The client contacted KTC on a Sunday morning with a special request and fast liquidity need. They had a boat with a $40 million load of fuel that had been unable to get into port for almost a month due to bad weather and issues at the port. They needed a quick solution to gain some liquidity from the shipment to fulfill another company need. Quickly KTC assessed the status of the vessel as well as who financed the load of fuel.

The fuel was financed by a major European bank and repayment secured by a documentary letter of credit from the end customer after delivery. KTC was able to quickly assess the situation and structure a buy resell agreement with the client and worked with the bank to get a partial assignment of the letter of credit allowing KTC to fund the cash need within four working days.