SLCM Ltd, a subsidiary of Sohan Lal Commodity Management Pvt Ltd, has inked a collateral financing deal with local lender CB Bank.
The Delhi-based agri logistics and warehousing company said the move is aimed at providing agri-financing solutions to farmers, processors, traders, exporters and importers across Myanmar.
According to the deal, the company would undertake sampling, testing, grading, assaying, fumigation, aeration and quality certification of the commodities to ensure the quantity and quality of the pledged commodity.
CB Bank will offer farmers to pledge 60 percent of their commodities which will be stored at SLCM warehouses for a stipulated period at an annual interest rate of 13 percent.
SLCM said the association is in line with their expansion plans in Myanmar and the firm is expected to double its presence from current four locations to eight in the country. In January, SLCM tied up with local lender Yoma Bank for its first collateral financing deal in Myanmar.
Sandeep Sabharwal, group CEO, SLCM, said, “This is the second tie-up that we have formalised in 2015 in Myanmar …. Our output has been very encouraging from the earlier association and the way in which we are seeing a paradigm shift in Myanmar’s economy and policies, especially relating to agriculture and collateral financing, we are determined to further explore the region and fourfold our presence there.”
SLCM said till date it has disbursed loans worth K680 million ($680,000) to several clients on agriculture commodities. In about 11 months, SLCM has managed 100,000 square feet of space, 15 different commodities with a throughput of about 4 million tonnes.