Crystal International boosts liquidity with factoring programs

Crystal International Group has entered into several non-recourse factoring programs with financial institutions including Citibank, HSBC, IFC, MUFG, RBS, and Standard Chartered. These programs allow the group to sell trade receivables from its global brand customers, mitigating default risks. The group intends to use the proceeds, expected to be $309,291,000 as of July 31, 2025, for general working capital, including raw material procurement and operational expenses.

During the relevant period (February 18, 2020, to August 31, 2025), Crystal International factored substantial trade receivables, including $849,097,000 to HSBC and $1,286,371,000 to Standard Chartered. For the upcoming 12-month period, maximum expected factoring amounts include $341,000,000 for Citibank and $590,000,000 for Standard Chartered. Discount charges range from 0.6% to 3.0% per annum, resulting in expected discount rates between 4.8035% and 7.2035% depending on the financial institution.

The factoring programs, deemed major transactions, have received written shareholder approval from a closely allied group representing approximately 76.50% of voting rights. The company acknowledges delays in past disclosure obligations for these transactions due to an inadvertent interpretation of listing rules. Measures are being implemented to ensure future compliance, including enhanced internal controls and regular training on notifiable transaction requirements.