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HSBC completes first ever receivables finance transaction for exporters in Bangladesh

New Age Online | Published: 21:44, Jul 07,2020

 
 

The Hongkong and Shanghai Banking Corporation Limited in Bangladesh completed its first receivables finance transaction for M&J Group, one of the leading readymade garment exporters in Bangladesh.

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, said a press release on Tuesday.

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.

Ajay Sharma, regional head of Global Trade and Receivables Finance, Asia Pacific, HSBC, 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 optimization. Receivables finance as a solution can help businesses unlock liquidity and better manage risks.’ 

Mahbub ur Rahman, chief executive officer, HSBC Bangladesh said, ‘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.’

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