Ipoteka bank OTP Group has financed a company’s exchange contract for the purchase of raw materials through the JSC “Uzbek Republican Commodity Exchange” (UZRTSB).
As part of the transaction, the Bank provided financing to settle the exchange contract. The funds were transferred directly to the Exchange in accordance with the established settlement procedures. Following the payment, the raw materials were delivered, and the supplier received payment for the goods supplied.
For the buyer, this mechanism made it possible to purchase the required raw materials without a one-time diversion of a significant amount of its own working capital. The company was granted a payment deferral of up to 90 days, enabling it to manage cash flows more flexibly, reduce cash gaps, and preserve working capital for its ongoing business needs.
The completed transaction creates an opportunity for other companies making purchases through UZRTSB to access financing for exchange contracts from Ipoteka bank OTP Group. Companies can obtain financing for raw material purchases with a payment deferral of up to 90 days, allowing them to manage working capital more efficiently and ensure timely financing of their ongoing procurement needs.
In the financial markets of several CIS countries, a similar financing mechanism is commonly known as agency factoring.
