The Royal Bank of Scotland (RBS) has raised a financing facility to support Unit Export (UEL), a procurement agent that uses aid funding to complete various development projects.
UEL's customers are usually those in receipt of aid from the European Union or World Bank, and the projects they supply to can include building new hospitals or reconstructing roads. For instance, they have secured a tender with the ministry of transport in the Central African Republic to provide vehicles, trailers and equipment needed for the construction of roads.
Originally UEL approached RBS with the request to release some property as security to underpin a bond line and an overdraft facility. RBS came up with a solution that provided a largely unsecured facility to secure 12 contracts for UEL.
The facility allows the borrower flexibility in how and when it uses the funds.
RBS's relationship manager Barry Boroughs and Paul Marsh, associate director in global transaction services, worked together to structure the finance to meet UEL’s needs. Backed by RBS, the company can now tender for more contracts and has already reported an increase in turnover.
"The flexible facility we have arranged with RBS suits us to a tee and means we can not only focus on the 71 contracts we are working on but also look further forward with confidence,” comments Chris Pearson, managing director at UEL.
He adds: “Every solution they suggest is bespoke and because they 've taken the time to understand how we work and exactly what we need, it makes it easier for us to get on with our jobs.”
Paul Marsh, assistant director, global transaction services at RBS, further comments:”UEL are involved in some amazing projects around the world, and their business is truly global. It’s been a real eye opener working with Chris, and find out how aid is turned into successfully completed projects.
“We look forward to seeing UEL go from strength to strength as they win more contracts in 2008.”
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