DHAKA, July 7, 2020 (BSS) – The Hongkong and Shanghai Banking Corporation Limited (HSBC) in Bangladesh has completed its first receivables finance transaction for M&J Group, one of the leading Ready-made Garment (RMG) 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 today.
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, 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.”
Commenting on the transaction Md Mahbub ur Rahman, Chief Executive Officer, HSBC Bangladesh 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.”
Commenting on the product solution, Salahuddin Ahmed, Managing Director of M&J Group said, “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.”