Regulatory Filings • Feb 28, 2013
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Media | 28 February 2013 08:47
DF Deutsche Forfait structured US$ 55 million ‘Deal of the Year 2012’
(DGAP-Media / 28.02.2013 / 08:47)
Press Release
DF Deutsche Forfait structured US$ 55 million 'Deal of the Year 2012'
– British magazine Trade & Forfaiting Review announces the most innovative transactions of the year
– Deal between Chinese and Russian car makers
– DF Group benefits from track record in complex cross-border deals
Cologne, 28 February 2013 – DF Deutsche Forfait AG structured one of the most innovative forfaiting deals of the year 2012. This was announced by the panel of Trade & Forfaiting Review (TFR) in mid-February, marking the renowned British trade finance magazine's ninth annual awards for banks and service providers from the trade finance sector as well as outstanding transactions of the past year. The 'Deal of the Year' structured by DF Deutsche Forfait involved the complex forfaiting of exports by a Chinese car maker to Russia and was concluded in March 2012.
The 10 judges primarily highlighted the pioneering role played by the DF Group in the still young Chinese forfaiting market: 'Chinese forfaiting deals are pretty rare; it's an untapped market with great potential. DF Deutsche Forfait AG is shining a light on the untapped scope of this huge market where the major problem for us foreigners starts with name recognition.'
The deal involved the sale of components for light-duty vehicles totalling US$ 55 million. The exporter was Chinese auto manufacturer Chongqing Lifan Industry, who sold the components to a Russian car maker with a payment term of 260 days. To get liquidity more quickly and to minimise the risk of the transaction, the exporter contacted its bank, the China Merchants Bank (CMB), which, in turn, called on DF Deutsche Forfait AG. The DF Group had completed several successful transactions with CMB in the past. The main challenge was to find a solution that catered to the needs and requirements of the Chinese exporter, their bank, the Russian importer and the Russian bank that issued the guarantees. Moreover, currency risks had to be minimised, as the sales contract was in Chinese renminbi, the bank guarantee was in US$ and the importer had a EUR payment option.
Not least thanks to its multicultural team, the DF Group was able to devise the optimum solution for the Chinese exporter, while at the same time minimising its own risk. DF Group purchased four accounts receivables which have meanwhile been paid off or resold to an investor and paid in full.
About DF Group
The main business activities of DF Group are the purchase and sale of selected export receivables in emerging markets on a non-recourse basis. The objective is to sell the acquired receivables at the same time or in the short term. Forfaiting is an increasingly important tool in export financing, with volumes rising in line with the continuing advance of globalization. Creating tradable products from receivables benefits both exporters and buyers. As well as transferring risk to the buyer, the main benefit of forfaiting for exporters is the inflow of cash. This relieves the exporters' credit lines and improves their balance sheet structure. DF Deutsche Forfait AG structures receivables attractively, so that investors seek them as a type of investment.
DF Deutsche Forfait AG
Christoph Charpentier
Kattenbug 18 – 24
50667 Cologne
T +49 221 97376-37
F +49 221 97376-60
http://www.dfag.de
End of Media Release
Issuer: DF Deutsche Forfait AG
Key word(s): Enterprise
28.02.2013 Dissemination of a Press Release, transmitted by DGAP – a company of EquityStory AG.
The issuer is solely responsible for the content of this announcement.
DGAP’s Distribution Services include Regulatory Announcements, Financial/Corporate News and Press Releases.
Media archive at www.dgap-medientreff.de and www.dgap.de
| Language: | English |
| Company: | DF Deutsche Forfait AG |
| Kattenbug 18-24 | |
| 50667 Köln | |
| Germany | |
| Phone: | +49 (0)221 – 973 76 0 |
| Fax: | +49 (0)221 – 973 76 76 |
| E-mail: | [email protected] |
| Internet: | www.dfag.de |
| ISIN: | DE0005488795 |
| WKN: | 548879 |
| Listed: | Regulierter Markt in Frankfurt (Prime Standard); Freiverkehr in Berlin, Düsseldorf, München, Stuttgart |
| End of News | DGAP-Media |
| - - - |
| 202598 28.02.2013 |
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