OPERATION PRINCIPAL
Based on London Metal Exchange Commodities warranted through REFCO 's dealing, COMPO has structured the dealing operations with a new concept of L/C backed financing services over the traditional transactions. In today's competitive business environment and volatile marketplace where "risks are everywhere", COMPO is geared to provide our clients with more options to hedge their exposure profile and a convertible system from L/C facility to cash flow. With the delivery-oriented practice and tailor made solution, COMPO ensures the diversified trade financing the safest way.
As an advisor of Refco Investment Pte. Ltd in Singapore, Compo served in both risk
control and dealing assistance for the clients in China, who dealt the import and
re-export of London Metal Exchange�s Commodities. Compo assisted these clients to
sign the Sales and Purchase Contract with Refco; to issue usance Letter of Credit
in favor of Terus Jaya Resources Pte. and Refco and to finance the L/C against
commodity warrants. Also Compo undertakes the collection work for drafts/bill of
exchange accepted by major Chinese Bank under L/C in order to sell the drafts to
discounting banks over the world on commission basis. The annual total amount
concerning L/C backed Commodity financing is around USD20 million.
