The commodity becomes the collateral and is only released to the customer of off taker at the order of the bank and after receipt of cash into an escrow account.For import of non-perishable and acceptable commodity.
For import of non-perishable and acceptable commodity.
- Requires a percentage in fixed collateral
- Facility for 70% of the commodity price
- Client pays for warehouse & commodity, risk insurance & CM fees
- Self liquidating
- Off-balance sheet lending
- Monitoring/control of the commodity under the CM
- Tailor-made deal based on customer needs