PrimaDollar, leading provider of trade finance to Indian exporters, has just cleared the STS compliance process for its trade finance program under the European securitisation regulations. STS certification will help its lenders across Europe to provide low cost and efficient funding to PrimaDollar, even as the UK departs from the EU.
STS compliance is the new gold standard for securitisations, to date achieved by some of the largest borrowers in the capital markets (such as VW, Peugeot, Santander, and Bank of Scotland).
Speaking on the announcement Tim Nicolle, Group CEO of PrimaDollar, said, “STS compliance is very important to the trade finance that we provide to our Indian export clients. It leads directly to lower funding costs. We are already the lowest cost provider of non-bank trade finance globally, and this will further cement our market-leading position. As our Indian clients know well, the UK is leaving the European Union (“Brexit”) – and this has implications for the stability of funding available to UK trade finance platforms. Our STS certification means that our lenders across Europe can continue to provide low cost and efficient funding to us, even as the UK departs from the EU.”
STS compliance was achieved with the support of NIBC Bank NV, a leading European funder of Fintech and alternative credit platforms, international legal counsel Reed Smith, and was independently verified by PCS UK Ltd, a verification agent authorised by the Financial Conduct Authority in the UK.
PrimaDollar is a UK-based trade finance fintech with clients in over 30 countries, operating from its office network across Asia, Europe and the US. PrimaDollar provides trade finance directly to clients via its Exporter Finance program. PrimaDollar also provides trade finance through local banks, logistics providers and marketplaces who can embed trade finance digitally into their online platforms using PrimaDollar’s Trade Finance Toolkit.
PrimaDollar services its clients from its headquarters in the UK, supported by an international office network across South and East Asia. Founded in 2015, PrimaDollar launched its product internationally in early 2018 after three years of research and prototyping. PrimaDollar’s key breakthroughs are in the design of the product and the ability to deliver it at a competitive price. With rates as low as 4% per annum, PrimaDollar has been scaling quickly with 1,000s of shipments financed, with 10,000s of trading routes now being supported.
PrimaDollar’s product is globally deliverable and India has become major launch market, with four offices now established across the country. India is leading PrimaDollar’s international scale-up.
PrimaDollar provides trade finance directly to clients via its Exporter Finance program. PrimaDollar also provides trade finance through local banks, logistics providers and marketplaces who can embed trade finance digitally into their online platforms using PrimaDollar’s Trade Finance Toolkit.
About NIBC Bank
NIBC Bank N.V. is a commercial bank in the Netherlands offering corporate and retail banking products and services. Its corporate banking activities range from advising, structuring, financing and co-investing across debt and equity in Northwest Europe with a focus on the Netherlands, Germany and the UK. NIBC is a leading financier of alternative credit, leasing and fintech platforms operating across the wider European marketplace.
About PCS UK Ltd
PCS UK Ltd is authorised under section 28 of the STS Regulation by the Financial Conduct Authority in the UK (alongside PCS EU, authorised in France by the French Autorité des Marchés Financiers) to act as a third party verification agent in respect of STS compliance. PCS UK and PCS EU are not-for-profit organisations and include some of the most experienced securitisation professionals working in the markets today within their teams.
About Reed Smith
Reed Smith is a dynamic international law firm dedicated to helping clients move their businesses forward. Our belief is that by delivering smarter and more creative legal services, we will not only enrich our clients’ experiences with us, but also support them in achieving their business goals.Our long-standing relationships, international outlook, and collaborative structure make us the go-to partner for the speedy resolution of complex disputes, transactions, and regulatory matters.