CENTRAVIS metallurgical company was the first to involve currency forwards from Ukreximbank in strategic planning

Ukreximbank continues to introduce the up-to-date financial products in response to the request of its customers. Thus, CENTRAVIS metallurgical company (Nikopol) began to use a systematic strategy of hedging currency risk through forward transactions of Ukreximbank.

“As a leading global provider of high-quality solutions in the segment of seamless stainless steel pipes – the 4th in Europe and the 9th in the world – CENTRAVIS is actively conducting foreign trade operations, so currency conversion is an integral part of its business. Forward operations implemented by the Bank will help the company to plan cash flows with the established exchange rates, as well as to optimize its financial calendar in accordance with the timing of foreign exchange earnings, procurement of materials for production and other current operating expenses,” – said Oleksandr Isniuk, Head of Private Sector Corporate Business Department of Ukreximbank.

“Forward transactions are based on fixing the rate of sale or purchase of currency for a period specified by customers, which allows exporters and importers to minimize currency risks and improve financial planning for future periods,” – noted Anton Boldyriev, Head of Treasury and Investment Services Department of Ukreximbank.

“Forex variation is a major risk for a large exporter such as Centravis and implementing a systematic hedging of our EURO sales using forward is a “must have” of any Ukrainian exporter in 2021. We are glad that Ukrexim could offer us this technical product with limited cash deposit and great flexibility. We will progressively use forward to hedge up to 70% of our EURO revenue and secure cash flow and profitability from forex variation.” Added Alexandre JOSEPH, CFO of Centravis.

It should be recalled, that in March, PJSC CENTRAVIS PRODUCTION UKRAINE opened a long-term credit limit of EUR 35 million in Ukreximbank for the full-scale implementation of an investment program for the production of new types of seamless pipes, introduction of environmentally friendly and energy-saving technologies and further modernization.