Replies to post #125696 on Sino Agro Food Inc (fka SIAF)

[Handlamera]

They have probably made a budget and use of proceeds together with the leading bank. The loan amount will correspond to that. Normal procedure. The leading bank will of course follow TRW:s progress closely.

[Emilez]

$100 is roof, and it could be lower if in theory the board in one bank turns it down. I think that wont happen.

Yeah and it also seems to be divided up in three different parts. I wonder of that affects how easy it is to use the money for SIAF.

Syndicated facility

Standby letter of credit https://www.investopedia.com/terms/s/standbyletterofcredit.asp it seems this cannot be used for capex. However it might provide the margin of safety that SIAFs management always fail to have. So it is quite good that the bank might be able to impose some discipline to the management of Tri-way.

Trust receit https://www.investopedia.com/terms/t/trust_receipt.asp can possibly be used for capex.

Line of credit https://www.investopedia.com/terms/l/lineofcredit.asp can be used for capex.

[Mr. Fister]

In this example the company and the loan syndicate entered an agreement the 8th of June, and closed a month later 3rd/4th of July.

We could be really close.

[RealDutch]

2 Dutch banks in there. Rabobank could be part of the TRW syndicate as well. They cover the fish industry extensively in China.