Bolero’s cloud-based platform has facilitated the first fully electronic back-to-back LC transaction.
It involved the full e-presentation against a LC for copper concentrates including electronic e-BLs using Bolero’s ePresentation solution.
The entirely paperless transaction involves a number of counterparties in China, including Minera Escondida, the BHP Billiton joint venture, and the baby LC applicant Hong Kong Xiangguang international Holdings. The master LC applicant was Yanggu Xiangguang Copper Company and the issuing bank was Agricultural Bank of China.
Head of trade services division, international department at the Agricultural Bank of China, Zhang Zhaojie, comments: “We are delighted to participate in this significant first back-to-back transaction in China. Electronic presentations are playing a major role in the straight-through processing agenda, making international trade more efficient and collaborative.”
Regional director, Asia Pacific at Bolero, Ross Wilkinson says, “Complex back-to-back LC structures are significant instruments in the procurement hubs of Hong Kong and Singapore and Bolero is excited to have demonstrated the value of accelerating their cycle times.”
“BHP Billiton is moving away from labour intensive manual processes to dematerialize trade finance processes and systems interoperability by successfully completing this electronic presentation milestone.”
According to Ross, China is now the largest destination for baby LCs under master LCs (whereby an end buyer issues a master LC for the benefit of a trading arm company in another jurisdiction, which in turn issues a ‘baby’ LC for the benefit of an exporter). China is also the leading exponent market adopting secure electronic trade facilitation under ePresentation against LC instruments.
International exporters and producers are increasingly using Bolero’s ePresentation process, with over US$7bn processed over the platform in the last 12 months. Buyers typically include large manufacturers and commodity traders.