The Hongkong and Shanghai Banking Corporation Limited in Bangladesh completed its first Receivables Finance Transaction for Bangladeshi readymade garment exporter M&J Group, said a press release issued by the bank on Tuesday.
This proposition has been rolled out in line with HSBC’s own Receivables Finance model, wherein the customer gets early payment against their deferred term exports from HSBC Bangladesh.
Such payment will be under the buyer’s default risk coverage from HSBC offices abroad or other foreign reputable financial institutions.
The recent central bank circular paved the way to offer such secured and efficient way of working capital financing.
Commenting on this proposition, HSBC’s Global Trade & Receivables Finance regional head for Asia Pacific Ajay Sharma said, ‘Global trade is undergoing an unprecedented level of disruption. As maintaining liquidity and mitigating risk have become the primary objectives of corporates, there has been an increased focus on working-capital optimisation. Receivables Finance as a solution can help businesses unlock liquidity and better manage risks.’
HSBC Bangladesh CEO Md Mahbub ur Rahman said, ‘As the leading trade bank in Bangladesh, HSBC is proud to be associated with this first-of-its-kind transaction, which will support Bangladeshi exporters to receive payments on a non-recourse basis and facilitate better working capital management. Thanks to Bangladesh bank for the recent circular paving the way for such transactions to happen in Bangladesh.’
M&J Group managing director Salahuddin Ahmed, ‘We are extremely pleased to partner with HSBC on this first transaction under the proposition which will help us to get benefit at both ends by catering to buyers increased credit terms but with early payment on non-recourse basis.’
HSBC is the largest international trade bank, with an unrivalled global presence and access to over 90 per cent of the world’s global trade flows.
Operating in Bangladesh since 1996 with key focus in trade finance, the bank is currently facilitating almost 10 per cent of the country’s total trade volume and is continuously trying to contribute to local industry by introducing innovative products and propositions.
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