Premier Energy's Innovative Strategy Unveiled

Securing a $65M Purchase Order from PDVSA (Venezuelan State-Owned Oil Company) without a Letter of Credit

Premier Energy faced a critical challenge when they landed a substantial purchase order from PDVSA (a Venezuelan State-Owned Oil Company) but encountered hurdles in securing the financing and required manufacturing services.

Unable to obtain a traditional letter of credit due to qualification issues, the risk of losing the order and PDVSA’s future business loomed large.

Upon engaging with Focustar Advisors, a collaborative effort devised an unconventional approach that circumvented the need for a letter of credit, satisfying all involved parties.

By identifying stakeholders with mutual benefits in the transaction, we orchestrated a unique deal structure:

1. Leveraging a Chinese manufacturer capable of meeting strict quality standards and quantity demands.
2. Engaging a trading company as a local financing partner to manage the financing.
3. Involving an international bank as payment processors.
4. Employing a third-party engineering firm for process oversight and future opportunities.

Our strategic move involved placing crucial manufacturing equipment in a bonded warehouse

controlled by the trading company, providing collateral for the financing.

Additionally, we ensured payment security by establishing an independent international bank to handle transactions, providing comfort to all stakeholders who generally worry about simultaneous distributions of funds.

The outcome for Premier Energy was a resounding success: fulfilling the $65M purchase order,

securing profits, and cementing a lasting relationship with PDVSA for future ventures.

If your company seeks growth capital with revenues up to $50M or requires project financing for

projects up to $250M but faces hurdles in making your case heard, please reach out for a conversation.

Let’s navigate your unique situation together. Contact [email protected] or DM me on LinkedIn to embark on this journey.