CASE STUDY

Receivables Portfolio Purchase

Innovative Receivables Solution for a Leading Chemicals Company

chemicals - Europe and the United States
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A market leading specialty chemicals supplier with c2,000 employees across 30 countries and over 130 years of experience in leading innovation within the sector, selected Demica to establish a transformational global receivables financing programme across its operating markets.

Demica implemented a Receivables Portfolio Purchase programme across four currencies, establishing five revolving sub-portfolio transactions in Europe and the US.

Demica provided both structuring and reporting support, including addressing the challenges around the treatment of revenue recognition in the US and Germany along with reserve calculations, with reserves being cross-collateralised across each of the sub-portfolios, enabling the transaction to be funded as a single programme.

With extensive experience in structuring and technology, Demica seamlessly established complex reporting with the transaction being fully credit wrapped. Daily limit checking occurs through full API integration with key insurers providing significant credit enhancement, ultimately achieving a highly competitive pricing on the transaction.

€115m
Facility size
4 years
Length of relationship
12
Number of subsidiaries