Financing Sugar imports for Sugar Refinery in Indonesia

  • Project No.
  • Location
    DKI Jakarta
  • Start of project
Overview

The US$60 million trade financing operation for the Indonesian raw sugar refiner offers an alternative Shariah-compliant financing solution, as it is designed on structured Murabaha basis  with strong risk mitigants in place. PT Angels Products, the refinery, uses the funds for the purchase of raw sugar to be stored, processed and refined into white sugar for industrial use. The warehouse financing has a maximum tenor of three months on a revolving basis. A collateral manager is responsible for the monitoring and collateral management of the transaction, up to the release of raw sugar.

ITFC has not only innovatively moved the deal structure to a higher level, it designed the first of its kind structured Murabaha trade financing in Indonesia in favour of PT Angels Products, which can only be described as leading the way in market and structure development.

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35C, Office 8, LOT 28 SCBD
Jl. Jend. Sudirman Kav. 52/53
Senopati, Jakarta - Indonesia 12190
T: +62 21 2933 3468, F: +62 21 2933 3464,
E: cgoindonesia@isdb.org

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