HSBC Completes First Insurance-Backed Receivable Financing Transaction in Bangladesh

Hongkong and Shanghai Banking Corporation Limited (HSBC) in Bangladesh recently completed the country’s first insurance-backed receivables financing transaction for MBM Garments Ltd.

The proposal was rolled out in accordance with HSBC’s debt financing model and local regulations, whereby the customer gets an early payment on their deferred term exports from HSBC Bangladesh, according to a press release.

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It also comes with a tailor-made insurance solution to cover and manage the risk of non-payment of buyers through HSBC’s business partners, he said.

Wasim Rahman, Managing Director of MBM Garments Ltd, said: “We are extremely pleased to partner with HSBC on this first transaction as part of the proposal which will help us secure not only non-recourse early financing, but also hedging. the risk of default. by an insurance company. “

This opened up another avenue in our quest for innovative financing solutions, he added.

Mr Mahbub ur Rahman, CEO of HSBC Bangladesh, said that as the leading commercial bank in Bangladesh, HSBC continues to offer innovative solutions to clients dealing with cross-border trade.

“Our global network and our ability to provide risk measurement solutions will enable our clients to expand their international market,” he said.

Kevin Green, Country Head of Wholesale Banking, said that as the world’s leading commercial bank, HSBC is uniquely positioned to connect buyers and suppliers globally by leveraging its international network and offerings. structured products.

“HSBC is proud to partner with MBM Garments Ltd on the first insurance-backed debt financing transaction in Bangladesh. I would like to take this opportunity to thank the Bangladesh Bank for providing the necessary political support to enable such transactions which can help Bangladeshi exporters to better manage liquidity and risk.

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