Trade Finance Corporation Limited (TFC) has arranged a US$6mn pre-export financing for Kin Yip Wood Industries of Tawau, Malaysia. Kin Yip is a leading producer of plywood, veneer and sawn timber.
It also owns two forestry concessions in Sabah, Borneo, and is one of the largest log exporters to Japan. For plywood Kin Yip is FSC certified meaning it passes all requirements relating to the environment and labour practices for import into the US market.
This 12-month pre-export financing facility relates to a 12-month contract signed with its related distribution company in Taiwan. This distribution centre is on selling Kin Yip products in Japan, Korea and China. Funding and trade documentation handling is provided by a European bank in Singapore.
TFC is a Hong Kong-based arranger and facilitator of structured trade finance and project finance.