SLCM Group Partners with C B Bank to provide Collateral Financing

SLCM Ltd., the wholly owned subsidiary of Sohan Lal Commodity Management Pvt. Ltd, India's leading agri logistics and warehousing Group, has tied up with one of the largest and oldest banks, C B BANK in Myanmar for Collateral Financing. The step is aimed to provide agri-financing solutions to Farmers, Processors, Traders, Exporters & Importers across Myanmar. The company would undertake Sampling, Testing, Grading, Assaying, Fumigation, Aeration and Quality Certification of the commodities to ensure the quantity & quality of the pledged commodity.

C B Bank will offer farmers to pledge 60% of their commodities which will be stored at SLCM warehouses for a stipulated period at an annual interest rate of 13%. SLCM has announced this association in line with their expansion plans in Myanmar and is expected to double its presence from current 4 locations to 8 locations in the country.

On the occasion, Mr. Sandeep Sabharwal – Group CEO, SLCM said, "This is the 2nd tie-up that we have formalized in 2015 in Myanmar after the MoU with Yoma Bank earlier this year. 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. We have replicated our best practices & expertise in agriculture warehousing domain which have been evolved in several years of operations in India in this Golden Land of Myanmar."

Sohan Lal Commodity Management Pvt. Ltd., through their wholly owned subsidiary SLCM Ltd., had tied up with Yoma Bank earlier this year and till date has disbursed loans worth 680 Mn kyatts to several clients on agriculture commodities. In a short span of about 11 months, SLCM Ltd. has managed 100,000 sq feet of space, 15 different commodities with a throughput of approx. 4 million MT. Myanmar, where collateral based lending is limited to mostly land holdings, the recent shift of authorities to include key agriculture goods as collaterals is a landmark achievement.

C B Bank is one of the leading banks of Myanmar and operates through a network of 127 branches across the country. They were awarded the Best Corporate Bank in 2014.

The official signing ceremony was held at CB Bank, Yangon on 8th May, 2015. Several high officials witnessed the ceremony.

Source : Equity Bulls

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