The commodity becomes the collateral and only released to off- takers at the order of the Bank (release order).
The off- taker is expected to deposit funds to an Escrow / Collection Account before acquiring the release order from the bank.
- Self liquidating
- Off balance sheet lending
- Bulk importation (e.g. oil, commodities etc)
- Monitoring/control of commodity under the collateral manager.
- Any disbursement of funds, interest will be charged at applicable rates. Non fund based facilities, LCs and Guarantees.