HSBC completes first ever Receivables Finance Transaction in Bangladesh | The Daily Star
12:00 AM, July 08, 2020 / LAST MODIFIED: 12:57 AM, July 08, 2020

HSBC completes first ever Receivables Finance Transaction in Bangladesh

HSBC Bangladesh has completed its first Receivables Finance transaction for M&J Group, one of the country's leading exporters of garment products.

Global trade is facing an unprecedented level of disruption due to the ongoing coronavirus pandemic, making liquidity and risk management the primary objectives for any organisation. Subsequently, companies are more focused on optimising their working capital.

"Therefore, Receivables Finance could be the solution to help businesses unlock liquidity and better manage risk," said Ajay Sharma, Regional Head of Global Trade & Receivables Finance in the Asia Pacific for HSBC.

The transaction was completed in line with the bank's own Receivables Finance model, wherein the customer gets early payment against their deferred term exports from HSBC Bangladesh.

Such payments will be under the buyer's default risk coverage from HSBC offices abroad or other foreign reputable financial institutions.

However, this only made possible after a recent Bangladesh Bank circular paved the way for banks to offer companies such secured and efficient schemes to finance working capital.

As a leading trade bank in the country, 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, said Md. Mahbub Ur Rahman, Chief Executive Officer of HSBC Bangladesh.

"We are extremely pleased to partner with HSBC on this transaction, which will benefit both ends by catering to buyers with increased credit terms but on an early payment and non-recourse basis," said Salahuddin Ahmed, Managing Director of M&J Group.


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