DEMICA the specialist provider of working capital solutions to major corporates and banks, announced today that has been mandated as Lead Adviser on over $1bn of new live transactions for clients across North America and Europe in the last two months.
The new mandates reflect the success of DEMICA’s decision in 2014 to transform itself from a technology service provider to an alternative finance platform providing trade receivable finance and supply chain financing.
The new clients, including a major Fortune 50 corporation, are all multinationals operating across a wide range of sectors including transport & logistics, retail and technology & telecommunications. As expected from a firm that specialises in multi-jurisdictional deals, each of these securitisations is providing working capital in up to six countries. Financing for each transaction is being provided by Tier 1 banks in the US, Europe and Asia.
Commenting on the new activity, DEMICA Chief Executive Officer Matt Wreford said, “The cost of funding on trade receivable securitisations has never been as attractive as it is now and offers clients the potential to refinance high yield debt to save over 350bps per year. In addition to Lead Adviser on these transactions, our technology platform is playing a number of different roles including advance rate optimisation, daily reporting and integrated warm back-up servicing. We have invested heavily in new people, technology and infrastructure in order to provide the systems and expertise that our multinational clients need to meet their working capital requirements.”