22nd Jan 2015 10:12
LONDON (Alliance News) - Digital Globe Services Ltd Thursday said it has entered a foreign exchange services agreement for an initial one-year term with major shareholder The Resource Group International.
Under the deal, Digital Globe has the option to exchange US Dollars into Pakistani Rupees with The Resource Group, at an independently derived, more favourable exchange rate and with lower transaction costs than those available from banks, it said.
Digital Globe has offshore operations in Pakistan which are cost centres for the company, with its US subsidiary DGS Inc providing monthly funding of between USD500,000 and USD600,000 to its Pakistani subsidiary, DGS (Pvt.) Ltd, in local currency. Digital Globe principally receives client-related cash inflows in the US dollars. Traditionally, these transfers have been done through the company's banks.
"TRGI has recently offered its portfolio companies the flexibility of sending funds to Pakistan through TRGI at a preferential exchange rate that is 1% better than the median market exchange rate indicated by an independent, third-party website. DGS has entered into the FX Agreement with TRGI whereby the Company now has the option of utilising TRGI's foreign exchange services rather than using customary banking arrangements," Digital Global said in its statement.
Digital Globe is not obliged to buy rupees through The Resource Group, nor is the latter obligated to provide the foreign exchange services unless it is in a position to do so. Digital Globe will also maintain the ability to procure rupees through its banks.
Digital Globe shares were untraded Thursday morning. The stock last traded at 151.00 pence.
By Steve McGrath; [email protected]; @stevemcgrath1
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