BOSTON, Oct. 16 /PRNewswire-FirstCall/ -- Through Ex-Im Bank's letter
of credit policy, Sovereign Bank recently confirmed a letter of credit from
Intercontinental Bank, Plc of Nigeria. This transaction will support the
sale of wheat and other grains valued at $10,000,000 to Intercontinental
Bank's clients, Flour Mills of Nigeria; Honey Wells Flour Mills Ltd.; and
Unikem Industries, Ltd.
Sovereign is the first bank under the Ex-Im program to arrange trade
financing under the structured facility for Intercontinental. This includes
a short-term revolving letter of credit direct to the Nigerian bank, which,
in turn, will issue import letters of credit on behalf of their domestic
customers. Sovereign expects to execute the first transaction under the
agreement later this month.
The following trade finance deals have also recently been completed by
Sovereign Bank:
Sovereign's Structured Trade Group provided an $11,833,180
three-year-term loan to a private Mexican company for their purchase of
capital equipment. This equipment will be used in the oil and gas industry
in Mexico.
Sovereign's Structured Trade Group closed a $10.0 MM revolving supplier
line of credit. This line of credit is utilized by the U.S. supplier to
extend 180-day financing terms to its buyers located in Mexico and the
Caribbean, with Sovereign Bank financing the supplier through the purchase
of these trade receivables. Due to the success of the facility, Sovereign
and the supplier are in discussions to double the program size by year end.
"Our Trade team was able to creatively structure these complex deals in
a way that immediately benefits our customers, as well as their suppliers
and customers, and reduces risk for all parties involved," said Dennis
Dubois, senior vice president and director of International Trade Services
for Sovereign Bank's Global Solutions Group. "We leverage our experienced
team and extensive product solutions to meet our customers' global trade
needs and support the continued growth of their businesses."
Sovereign Bank's Structured Trade Finance Group, with offices in
Boston, MA and Hartford, CT, provides customized short and medium-term
financing structures for U.S. exporters located throughout the United
States. Along with other divisions of Sovereign Bank, including Global Cash
Management, Capital Markets, and Asset Based Lending, the Structured Trade
Finance team is expert at developing customized solutions to help our
clients secure financing and protect their foreign receivables against the
risk of non-payment. For more information on Sovereign's Structured Trade
Finance Group, visit
http://www.sovereignbank.com/corporate/international/trade_finance.asp .
About Sovereign
Sovereign Bancorp, Inc., ("Sovereign") (NYSE: SOV), is the parent
company of Sovereign Bank, an $89 billion financial institution with nearly
800 community banking offices, over 2,000 ATMs after giving effect to the
recently announced branding agreement in which Sovereign ATMs will be
placed in CVS/pharmacy locations and approximately 12,000 team members with
principal markets in the Northeast United States. Sovereign offers a broad
array of financial services and products including retail banking, business
and corporate banking, cash management, capital markets, wealth management
and insurance. Sovereign is the 17th largest banking institution in the
United States. For more information on Sovereign Bank, visit
http://www.sovereignbank.com or call 1-877-SOV-BANK.
Sovereign Bank, its logo and lantern are service marks of Sovereign
Bank or its affiliates or subsidiaries in the United States and other
countries.
SOURCE Sovereign Bank
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Related links:
http://www.sovereignbank.com/
CONTACT:
Ellen Molle, Sovereign Bank, +1-617-757-5573,
Cell: +1-617-548-9932, emolle@sovereignbank.com
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