Ukreximbank continues to introduce topical financial products in response to the request of its customers. Thus, the metallurgical company Centravis (Nikopol) began to use a systematic strategy of hedging currency risk using forward operations from Ukreximbank.
“As a leading global supplier of high-quality solutions in the segment of seamless stainless pipes - fourth in Europe and ninth in the world - Centravis actively conducts foreign economic operations, therefore currency conversion is an integral part of its business activities. Forward operations introduced by the Bank will help the company to plan cash flows with certain exchange rate targets, as well as optimize its financial calendar in accordance with the timing of foreign exchange earnings, procurement of materials for production and other current operating expenses, sector of "Ukreximbank" Alexander Isnyuk.
"Forward operations are based on fixing the sale or purchase rate of foreign exchange for a period specified by clients, which allows exporters and importers to minimize currency risks and improve financial planning for future periods," said Anton Boldyrev, Director of the Treasury and Investment Services Department of Ukreximbank. p>
“Variation in the Forex market is a major risk for a large exporter like Centravis, and the introduction of a systematic hedging of our euro sales using a forward is a must for any Ukrainian exporter in 2021. We are delighted that Ukreximbank can offer us this technical product with limited cash deposits and great flexibility. We will gradually move forward to hedge up to 70% of our euro income and ensure cash flow and profitability from changes in currencies, ”added Alexandre Joseph, CFO of Centravis.
Let us remind you that in March CENTRAVIS PRODUCTION UKRAINE CJSC opened a long-term credit limit in Ukreximbank in the amount of 35 million euros for the full-scale implementation of the investment program for the production of new types of seamless pipes, the introduction of environmental and energy-saving technologies and further modernization of production.
Centravis is one of the world's largest manufacturers of seamless stainless pipes. The company was founded in 2000. Production facilities are located in Nikopol (Dnepropetrovsk region). Centravis is one of the world's top 10 players, supplies products to Thyssenkrupp, BMW, Alstom, Linde, Samsung, Volkswagen and other companies. The company employs over 1400 people.
