Trade Finance Corporation Limited (TFC) has arranged a one-year US$4mn financing for McCorry Timber Limited based in Kota Kinabalu in Sabah in Borneo, Malaysia. McCorry is a producer and trader of variable wood products. This finance facility will support the company’s plywood activities and includes funding for purchases and freight as well as warehousing and distribution activities in the US and Mexico.
Funding and letter of credit facilities were provided by UFJ Bank, Hong Kong.
There is an option to rollover the facility after a year and the pricing came in at 3.5% over Libor.
TFC is a Hong Kong-based arranger and facilitator of structured commodity and trade finance and project finance. McCorry is a client known to TFC’s founder and head, David Sullivan, for many years from when Sullivan was at MeesPierson, Fortis Bank and Noble Trade Finance. McCorry is the only foreign timber company based in Kota Kinabalu close to the product origin in Sabah. It has a distribution company in the US and Mexico and a sawmill investment in Siberia. It is a new customer of UFJ introduced by Sullivan, who says of the bank: “Under the leadership of Yasuchoci San in Tokyo and Goda San in Hong Kong they are rapidly building global expertise in structured trade and commodity finance and proving it by doing these deals.”