Orix Trade Capital (OTC) has completed the successful syndication of a US$20mn medium-term secured pre-export finance facility for Coimex Trading Ltd, BVI, guaranteed by Cia Importadora e Exportadora Coimex and Coimex Empreendimentos e Participa íes Ltda, Brazil. The facility will be used to finance sales of sugar, coffee and soybeans from Coimex to Coimex Trading that will in turn be exported to buyers located outside of Brazil. The facility was fully subscribed and is secured by future receivables due from various buyers that will make payments into a dedicated collateral account located in New York.
OTC acted as bookrunner and lead arranger for the facility and was joined by the Octave-1 Fund as lead manager, reflecting “OTC’s ongoing ability to attract non-traditional sources of capital to the trade finance market”, claims the firm.
Commenting on the success of the facility, Zenilton Rodrigues de Mello, chief financial officer of Coimex says: “The flexible structure of the facility was custom-designed to fit the needs of our business and we are delighted that it has given us access to medium-term financing from international investors outside the traditional banking market.”
Coimex is one of Brazil’s largest trading companies with consolidated net revenues and net income as of December 31, 2002 of R$1.49bn and R$48.11mn, respectively. The company maintains seventeen regional offices in 10 Brazilian states, as well as operating subsidiaries in the US, Switzerland and the British Virgin Islands and specialises in trading Brazilian commodities, including sugar, alcohol, petroleum derivatives, coffee, grains and meat, in the domestic and international markets.