Corporate and Investment Banking. Open Account Trade and Supply Chain Financing Solutions for Sellers

Transcription

1 Corporate and Investment Banking Open Account Trade and Supply Chain Financing Solutions for Sellers

2 Standard Bank your trade partner in, for and across Africa Open Account Trade and Supply Chain Financing If all sales were settled on a cash basis, receivables management would be easy. But the reality is that a significant part of your sales could be made on credit terms. As such, you inevitably have to deal with the impact of receivables on profitability, liquidity and productivity. With over 150 years experience, Standard Bank understands the need of businesses to effectively manage receivables due to their impact on: Profitability in optimising pricing, credit terms and profitable sales; de-risking your balance sheet and improving credit monitoring; and reducing cash collection costs. Liquidity in accelerating cash flow and providing certainty around working capital. 3

3 Productivity in improving billing, collections and reconciliations; and improving balance sheet ratios, credit rating and share price. Standard Bank can provide you with working solutions to drive efficiency in your working capital management. Export Invoice Financing or Invoice Discounting Standard Bank provides short-term finance against copies of commercial invoices drawn to settle open account trade. This accelerates cash flows and improves your liquidity. This solution can be structured with or without recourse to you. When a without recourse structure is provided, the bank will make limits on your buyer. 2. Drawdown request, commercial invoice and evidence of shipment Seller 1. Deliver goods and commercial invoices/ evidence of shipment Buyer 1. Seller delivers goods and invoices the buyer 2. Seller requests a drawdown on invoice finance facility with Standard Bank by submitting copies of commercial invoice and proof of shipment 3. Standard Bank draws down on loan and makes payment to seller s account with Standard Bank 4. On maturity, the loan is settled from proceeds of sale. Receivables Discounting This involves the purchase of invoices or bills raised by you on approved buyers. In consideration of this purchase, Standard Bank will fund, prepay and/or discount the qualifying invoices or bills. We rely on the quality of the book to support this financing structure. As with discounting, this solution improves liquidity through accelerated cash flows, and allows for better matching to working capital requirements due to timing flexibility. It also enhances collection support by leveraging on Standard Bank s extensive network and supports sales ledger administration with timely and comprehensive management information system reports. Balance sheet efficiency is enhanced and risk is mitigated against default or insolvency of the buyer and associated country risk. Buyer s bank 3. Buyers pays directly to seller s nominated account 4 5

4 The transaction process for Receivables Discounting Ongoing contract of purchase and sale between the supplier and buyer 1. The buyer places a purchase order Supplier 2. Pro forma invoice is sent to the buyer Buyer Time R 7. The supplier presents receivables schedule and request to discount to Standard Bank Buyer s bank Transaction initiation 3. Goods are shipped and the invoices are presented to the buyer 4. Buyer provides accepted disounting request to supplier. 5. The discounted funds are paid to the supplier on day 1 6. The full valie of the invoice is paid to Standard Bank at maturity date Discount date R0 Cost borne by R95 A R100 the suppliers 6 1. Qualifying receivables are purchased by Standard Bank through the receivables purchase agreement after appropriate due diligence and structuring of the facility 2. Our customer, as the supplier, continues to trade as usual and invoices various buyers 3. Customer requests for drawdown against qualifying debtors/buyers. Standard Bank advances up to 90% of invoice value and credits the seller 4. On the due date, the buyers pay directly to a controlled account in Standard Bank 5. The balance off the invoice is paid to our customer on settling its obligations. Why Standard Bank? With over 150 years experience, representation in 19 countries in Africa and key financial centres, Standard Bank is best equipped to connect your company to Africa and to the world. We have a comprehensive product range of trade and cash management products to ensure your working capital requirements are met. Due to regional and incountry regulations, there may be differences in offerings across geographies. Please Contact your Standard Bank Relationship Team to help you navigate complex regulatory environments and provide the best solutions for your needs. Our Africa footprint and local expertise ensure that your business can enjoy market insights and end-to-end solutions. With a track record of delivery and convenient access to up-to-date technology and a dedicated workforce, we service your needs through robust channels and extensive correspondent networks. An award-winning trade finance team. 6 7

5 Solutions Private for Sellers Equity Connecting Africa and the world Standard Bank Group Awards and Rankings African Investor 2013 Bank of the Year African Banker 2013 Deal of the Year: Umeme IPO Fixed Income Deal of the Year: Ghana Seawater Desalination Project Bloomberg The World's Top 20 Green Banks 2012 Overall ranking: 12 Clean-Energy Investments ranking: 17 Reducing Environmental Impact ranking: 15 Environmental Finance Best Global Origination Firm Kyoto Credits. 8 Presence in pools of capital in deveoped markets. Presence in selected emerging markets. emeafinance Achievement Awards 2012 Best syndicated loan house in Africa Best sovereign syndicated loan in Kenya Best supranational syndicated loan: Afreximbank Best M&A house in Africa Best M&A deal in Africa: Tiger Brands buys Dangote Flour Mills Best corporate bond in CEE: Mongolian Mining Corporation Best corporate bond in Africa: JD Group Best local currency bond (shared): Lagos State Government Best IPO in Africa 2012: Umeme Limited Best follow-on funding in Africa: Flour Mills of Nigeria Best securtisation house in Africa Best securitisation deal in EMEA: SA Home Loans 9

6 Standard Bank Group Awards and Rankings emeafinance African Banking 2013 Best Investment Bank in Africa Best Investment Bank in Angola Best Investment Bank in Ghana Best Investment Bank in Kenya Best Investment Bank in Namibia Best Bank in South Africa Best Investment Bank in South Africa Best Investment Bank in Tanzania Best Investment Bank in Uganda Best Broker in Nigeria Best Asset Manager in Nigeria emeafinance Project Finance 2012 Best project finance house in Africa Best natural resources deal in EMEA: Konkola Deep Mining Project, Zambia Best natural resources deal in Africa: Sephaku cement project, South Africa Best PPP deal in EMEA: The Eurasia Tunnel, Turkey Best telecoms deal in EMEA: MTN Ghana's network expansion Best water deal in Africa: Desalination plant, Ghana emeafinance Treasury Service 2013 Best treasury services in Africa Best transactional bank for financial institutions in Africa Global Finance World s Best Sub-Custodian Banks 2013 Global Investor 2013 Best Subcustodian in Nigeria, Stanbic IBTC Bank Best Sub-Custodian of the Year, South Africa Global Trade Review 2012 Best Deal: African Minerals Limited Export GTR Africa Leaders in Trade 2013 Best local trade finance bank in Sub-Saharan Africa (overall): Standard Bank Best local trade finance bank in East Africa: Stanbic/Standard Bank Best local trade finance bank in the DRC: Stanbic Best local trade finance bank in South Africa: Standard Bank GTR Leaders in Trade 2013 Best Trade Bank in Sub-Saharan Africa Newsweek 2012 Standard Bank ranked as South Africa s greenest company 10 11

7 Standard Bank Group Awards and Rankings PMR.africa 2013 Diamond Arrow (highest ranking) award in the PMR South African survey of corporate users of foreign exchange Euromoney Awards of Excellence 2013 Best Investment Bank in Africa Best Bank in South Africa Best Risk Adviser in Africa Best Equity House in Africa Project Finance Deals of the Year 2012 African Mining Deal of the Year: Konkola Copper Euromoney Deals of the Year 2012 Deal of the Year Award: Joint bookrunner for Namibia s debut USD500 million Eurobond PWC survey ranked1 st Risk South Africa 2013 ranked 1 st Corporate Banking in South Africa Foreign Exchange Trading in South Africa Commodities Trading in South Africa Electronic Banking wholesale in South Africa Trade Finance in South Africa Sub-Saharan Non-Rand Products in the following Asset Classes: Euromoney s Real Estate Survey 2013 ranked 1st Overall in Nigeria Loan Finance in Nigeria Equity Finance in Nigeria Debt Capital Markets in Nigeria M&A Advisory in Nigeria Overall in South Africa Loan Finance in South Africa Risk Awards 2014 Interest Rate products Foreign Exchange products Equity products Global Emerging Markets Dealer of the Year Euromoney Annual Africa Research Poll 2013 Best overall research: Economics in Sub-Saharan Africa Best construction/cement research in Sub-Saharan Africa Best oil/gas/chemicals/ petrochemicals research Best property/real estate research Sunday Times/TNS Top Brands survey Ranked number 1 in the consumer banking category in South Africa FX Week Best Bank Awards 2013 Best Bank for South African Rand 12 The FT/IFC Sustainable Finance Awards 2013 Sustainable Bank of the Year, Africa and the Middle East 13

8 Forbes Global Top 500 Banking Brands 2013 The most valuable banking brand in Africa FM Top Companies 2013 Global Finance World s Best Investment Banks 2013 Standard Bank Group Ltd has ranked in the Top 10 South African Giants Best Investment Bank in South Africa Best Investment Bank in Angola The Banker Deals of the Year for Africa 2013 Structured Finance: Skye Bank Real Estate Finance Alice Lane M&A: Tiger Brands Equities Lonmin rights issue Global Finance World s Best Emerging Markets Banks 2013 Best Bank in the DRC Best Bank in Namibia Best Bank in South Africa Best Bank in Uganda The Banker Top 500 Bank Brand 2013 The Imbasa Yegolide Awards 2013 Ranked number 1 Bank Brand in South Africa and Africa Custodian of the Year, South Africa, Standard Bank Investor Services Global Finance World s Best FX Providers 2014 Best FX Provider in Africa Country awards for Best FX Provider in Kenya, Nigeria (Stanbic IBTC), Botswana, Zambia and South Africa Trade Finance Awards for Excellence 2013 Best trade bank in sub-saharan Africa Best South African trade bank Global Finance World s Best Trade Finance Banks 2014 Best Trade Finance Bank in Africa and South Africa Trade Finance Deals of the Year Awards 2013 Deal of the Year, Tonkolili Deal of the Year, Maurel and Prom Global Finance World s Best Treasury & Cash Management Providers 2014 Best Overall Bank for Cash Management in Africa Best Bank for Liquidity Management in Africa Best Provider of Money Market Funds in Africa Best Bank for Payments & Collections in Africa Trade & Forfaiting Review 2012 Treasury Management International 2013 Commercial Deal of the Year: Export Trading Group deal Best Risk Management, Africa Best Cash Management, Africa Global Finance World s Best Sub-Custodian Banks 2014 World Finance Magazine 2013 Greenfield Deal of the Year Kwale International Sugar Company Limited ( Kiscol ) 14 15

9 FM Top Companies 2013 Global Finance World s Best Investment Banks 2013 Global Finance World s Best Emerging Markets Banks 2013 Standard Bank Group Ltd has ranked in the Top 10 South African Giants Best Investment Bank in South Africa Best Investment Bank in Angola Best Bank in the DRC Best Bank in Namibia Best Bank in South Africa Best Bank in Uganda Contact us Contact us for information on international trade services in, for and across Africa. For further information on any of our products and services, contact: Your nearest Standard Bank International Trade Services office Telephone: 0860iTrade/ Visit our website at (select Corporate and Institutions, click on Products and Services, and click on International Trade Services under Transactional Services) Global Finance World s Best FX Providers 2014 Best FX Provider in Africa Country awards for Best FX Provider in Kenya, Nigeria (Stanbic IBTC), Botswana, Zambia and South Africa Global Finance World s Best Trade Finance Banks 2014 Best Trade Finance Bank in Africa and South Africa Global Finance World s Best Treasury and Cash Management Providers 2014 Best Overall Bank for Cash Management in Africa Best Bank for Liquidity Management in Africa Best Provider of Money Market Funds in Africa Best Bank for Payments & Collections in Africa Global Investor Best sub-custodian in South Africa and Nigeria (2013) 16 17

10 18 Authorised financial services and registered credit provider (NCRCP15) The Standard Bank of South Africa Limited (Registered Bank) Reg. No. 1962/000738/06 SBSA /14 Disclaimer This document has been prepared solely for information purposes by The Standard Bank of South Africa Limited, acting through its Corporate and Investment Bank Division ( SBSA ). Any indicative terms provided to you are provided for your information and do not constitute an offer, a solicitation of an offer, invitation to acquire any security or to enter into any agreement, or any advice or recommendation to conclude any transaction (whether on the indicative terms or otherwise). Any information, indicative price quotations, disclosure materials or analyses provided to you have been prepared on assumptions and parameters that reflect good faith determinations by us or that have been expressly specified by you and do not constitute advice by us and it should not be relied upon as such. The information, assumptions and parameters used are not the only ones that might reasonably have been selected and therefore no guarantee is given as to the accuracy, completeness, or reasonableness of any such information, quotations, disclosure or analyses. No representation or warranty is made that any indicative performance or return indicated will be achieved in the future. This document is not an official confirmation of terms, and any transaction that may be concluded pursuant to this document shall be in terms of and confirmed by the signing of appropriate documentation, on terms to be agreed between the parties. The information in the document is also subject to change without notice. SBSA, or an associated company, may have effected or may effect transactions for its own account in any investment outlined in the document or any investment related to such an investment. Prospective investors should obtain independent advice in respect of any product detailed in this document, as SBSA provides no investment, tax or legal advice and makes no representation or warranty about the suitability of a product for a particular client or circumstance. Transactions described in this material may give rise to substantial risk and are not suitable for all investors. SBSA will only provide investment advice if specifically agreed to by SBSA in appropriate documentation, signed by SBSA. This information is to be used at your own risks, and SBSA makes no representation with regards to the correctness of the information herein.

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