EXIM Thailand signs financial deal with Food and Drinks Plc
EXIM Thailand signed a financial facility agreement with Food and Drinks Plc on Monday.
The deal was made up of export credit worth Bt40 million together with insurance coverage for non-payment of goods by offshore buyers and foreign exchange forward contract lines of up to US$5 million, to hedge against foreign exchange risk.
EXIM Thailand senior executive vice president Wantana Mongkolsri said such financial deals aimed to serve working capital requirements of Thai SME exporters who want to expand their export markets while maintaining competitive costs.
With these facilities, he said they could venture into new markets with confidence or trading in a larger volume without concerns about possible buyers’ payment defaults and foreign exchange fluctuations.
They could also manage funding costs and profits from the starting date of sale contracts. In view of this, more time and resources could be devoted to product development and expansion of markets.
Food and Drinks Plc is a manufacturer and distributor of processed food and beverages under its ‘Zummer’ brand, plus other brands as an original equipment manufacturer.
About 50 per cent of its products are exported mainly to the Asean mainland – Cambodia, Laos, Myanmar and Vietnam, plus markets elsewhere such as Australia, the US, UK, Netherlands, Japan and China.