Trade Finance Corporation Limited (TFC) has arranged a US$8mn financing package for Hong Kong Metals & Mines Ltd (HKMM) based in Shenzhen, China, with production facilities in Guangyin, Guanxi province. HKMM is a producer of zinc ingots and a trader of non-ferrous metals. This finance facility will support pre-payments to selected smelters and pre-export inventory positions stored in China. Funding has been provided by UFJ Bank, Hong Kong. Insurance advisory work was provided by Trade Line, Hong Kong. Insurance cover is based on the performance risk of the producers.
The tenor is one year with an option to rollover. Pricing is 3% over Libor.
TFC is a Hong Kong-based arranger and facilitator of structured commodity and trade finance and project finance.
HKMM’s management is ex-China National Non-ferrous Metals (CNNC). The company was originally set up as Bangwon Ltd as a joint venture with CNNC Korea.