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ASEAN FOR YOU
BANK PAYMENT OBLIGATION A New Trade Payment Instrument
Presenter Thomas Tan Group Head, Transaction Banking
1. BANK PAYMENT OBLIGATION (BPO)
2
3
INTRODUCING BANK PAYMENT OBLIGATION (BPO)
Video
2. CASE STUDY
4
FIRST CROSS-BORDER BPO TRANSACTION & FINANCING IN MALAYSIA
Buyer Seller
HOW DOES BPO WORK?
Buyer & Seller agree to use BPO as trade settlement mode
Requests BPO issuance based on PO
Commercial Contract
Initial BPO
Inform BPO establishment
Baseline Report
5
TSU
*TSU – Trade Services Utility
Buyer
BPO POST-SHIPMENT FINANCING
Ship goods & documents
Data submission
Data submission Data match report
Effect payment on maturity date
Post-shipment Financing
Make payment on
maturity date
Data match report
6 *TSU – Trade Services Utility
TSU
Seller
BENEFITS OF BPO
Present documents
Send out documents
Document received
Acceptance of maturity
Documents checked by CIMB Courier
Documents checked by Issuing Bank
2 days 2 days 5 days
Letter of Credit
BPO Financing
Submit data
Data match/ BPO Financing
Data matching in
TSU Same day
2 days
Saving a total of
7 business
days
9 Business
days
Earlier WREF discounting
Before
After
7
Establish BPO Baseline
2 Business
days
WREF discounting
WREF – Without Recourse Export Financing
BENEFITS OF BPO
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Buyer
Seller
TSU
Benefits for Seller:
Assurance of payment and early access to financing
Reduces at least 30% documentation
Faster movement of documents to the buyer
Benefits for Buyer:
Credit enhancement proposition
Faster access to documents and goods
Simple application
Enhanced verification quality
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Hong Kong
Singapore
Malaysia
Indonesia
Shanghai
Thailand
CIMB’s ASEAN BPO PROPOSITION
Cambodia
Live
Testing
Tapping into CIMB vast resources & network, we
offer BPO solutions to our customers in ASEAN
countries:
Malaysia
Indonesia
Singapore
Thailand
Cambodia
9
CIMB BPO MOVING FORWARD
Continue to work with BPO-enabled correspondent bank to offer
customer BPO solutions
Expanding BPO reach to more CIMB network i.e Cambodia & Hong Kong
“Go-electronic” (essDocs) documents presentment between the buyer
and seller
Fully automated system for customer with our Regional Transaction
Banking online platform.
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3. ABOUT CIMB
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ABOUT CIMB
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5th largest ASEAN Universal Bank
ASEAN’s largest retail branch network
Largest APAC-based Investment Bank
World leader in Islamic Finance
Malaysia’s Leading Trade Finance Bank
Offer a complete suite of conventional & Islamic trade finance
products and services
Able to customised sophisticated trade requirements with
structured trade and commodity financing capabilities.
Geographical presence with offices in Hong Kong and Shanghai to
offer customer access to Greater China.
CIMB TRADE FINANCE CONTACTS
Chuang Boon Kheng boonkheng.chuang@cimb.com Tel: +603 2261 9749
Aida Sutanto Aida.Sutanto@cimbniaga.co.id Tel: +62 8158 067799
Desmond Loh desmond.loh@cimb.com Tel: +65 6302 3811
Narong Lerdluckanawong narong.l@cimbthai.com Tel: +66 2 626 7762
Ky Sana sana.ky@cimb.com.kh Tel: +855 23 988 088 ext: 1042
Malaysia
Indonesia
Singapore
Thailand
Cambodia
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THANK YOU
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