Coffee and Tea Company Seeking Loan in Kampala, Uganda

- Company is a Uganda-based coffee exporter seeking senior secured pre-shipment financing for its operations.
- Headquartered in Kampala, Uganda, a well-established coffee processor and exporter with a team of over 30 employees.
- Company enjoys a robust relationship with a key buyer in the UAE.
- Company serves both domestic and international markets, primarily selling processed whole coffee beans on a cash against documents basis.
- We are looking for a senior secured lender to provide a recurring $60,000 short-term commodity trade finance facility.
- Each loan of approximately $60,000 will finance the shipment of Uganda coffee worth approximately $100,000 from Kampala to Dubai.
- Uganda Robusta whole coffee beans, screen size 18, are packaged in 60kg bags and loaded into 20MT containers.
- Loans will be uncommitted and transactional, with a recurring structure and a duration of around 60 days per loan.
- Financing will cover the pre-shipment period from our Kampala processing plant to Mombasa, Kenya.
- The shipped coffee will be pledged as collateral to the lenders.
- Each loan will be supported by Maersk draft house bills of lading, inspection reports, certificates of origin, buyer acknowledgements, and other necessary documentation.
- Repayments will be made directly from the UAE buyer to the lender once the vessel is loaded at the Mombasa load port.
- In case of default, the lender will assume control of the shipment for liquidation to recover any outstanding loan balance.
- The senior secured lender will cover 85% of each loan, while we will contribute 15% as a junior secured lender.
- We will handle the documentation and administration of the loans.
- The interest rate for the senior lender is SOFR + 11.50% per annum, with the current SOFR approximately 5.35% per annum, resulting in an all-in rate of 16.85% per annum, with a floor SOFR of 3.5% per annum.
- Company has a valid operational license and an export license.