Case Studies

Case study_image 7 - globe network

Reducing banking concentration by bringing regional banks for subsidiary banking - Part 1

Background

Annual turnover of customer: Over USD 100.0 million

Annual group turnover: Over USD 1.0 billion

Facility Arranged: USD 25.0 million

Headquartered in Hong Kong, Group A has a vintage of over 100 years in the diamond industry and a consolidated turnover of over USD 1.0 billion. The group is present throughout the entire value chain, from rough diamond processing to jewellery manufacturing, marketing and retail for domestic and export markets with offices in 15 countries in 4 continents.

Despite its wide based presence and subsidiaries in various countries like China, Japan, Taiwan, India, Dubai, South Africa, Belgium, UK, US, etc, the Group had banking relationships with only a couple of global banks at parent level and was interested in reducing this concentration by bringing in new banks.

Solution

Interlinkages Consultancy Limited (ICL) was exclusively mandated to arrange working capital bank lines from new banks for the use of Group’s Dubai Subsidiary which acts as a wholesale distributor in the Middle Eastern market, procuring from India, Hong Kong and Belgium and selling to leading retailers in the Middle East.

ICL was successful in:

  • Introducing Middle Eastern Regional banks to the Group which previously had no banking relationship with the Group.
  • These regional banks had better regional credit appetite and much better ability to scale up in future from a relationship perspective. Also these were better placed to cater to Group’s specific requirements for Middle Eastern Region.
  • ICL was able to enhance the credit through a security package.

Result

The Group is now in a comfortable position with inclusion of a regional bank for its Dubai subsidiary and can adopt the same strategy for other regions, thereby

  • Freeing up the treasury bandwidth for core treasury activities at group level
  • Reducing the concentration of banking relationship
  • Ability to upsize banking facility with increase in business in Dubai
Contact Us

Interlinkages Consultancy Limited
Unit 21, 5th Floor, Core, Cyberport 3
100 Cyberport Road, Hong Kong

Quick Links
Follow us

© 2020 Copyright | Privacy Policy