Industry first electronic back-to-back letter of credit undertaken using Bolero
Global resources companies use leading trade finance platform for full end-to-end transaction involving multiple counterparties
London, 29 May 2014: A full electronic back-to-back letter of credit (LC) transaction in China was undertaken for the first time over Bolero’s cloud-based platform. The transaction involved the full ePresentation against a letter of credit for Copper concentrates including electronic Bills of Lading using Bolero’s market-leading ePresentation solution.
The process, which was entirely paperless, involved a number of counterparties. These included the BHP Billiton joint venture Minera Escondida Limitada and the baby LC applicant Hong Kong Xiangguang International Holdings Limited. The baby LC issuing bank and master LC advising bank was an Australian bank. The master LC applicant was Yanggu Xiangguang Copper Co. Ltd and the master LC issuing bank was Agricultural Bank of China. The carrier was Oldendorff Carriers who created the electronic Bill of Lading.
The ePresentation process is fast becoming an important transaction mechanism for international exporters and producers, with over US$7bn processed over the Bolero platform in the last 12 months. Buyers typically include large manufacturers and trading organisations specialising in commodities.
Zhang Zhaojie, Head of Trade Services Division, International Department at Agricultural Bank of China said: “As the master LC issuing bank, Agricultural Bank of China was 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.”
Ross Wilkinson, regional director, Asia Pacific, Bolero, added: “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 has further advanced the journey away from labour intensive manual processes to dematerialised trade finance processes and systems interoperability by successfully completing this electronic presentation milestone”
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- The Corporate Treasurer - http://www.thecorporatetreasurer.com/News/387311,bhp-billiton-showcases-electronic-baby-lc.aspx
- Trade & Forfeiting Review - http://www.tfreview.com/technology-update/trade-commodity-finance/first-electronic-back-back-lc-undertaken-over-bolero-cloud
- FX-MM - http://www.fx-mm.com/34914/news/industry-first-electronic-back-to-back-letter-of-credit-undertaken-using-bolero/
Bolero is a cloud-based platform which provides a different way to implement multi-party trade documentation solutions.
Unlike traditional point to point approaches which are costly, complex and uncertain, Bolero’s cloud architecture ensures fast deployment, ease of use and global access together with no infrastructure costs. Users benefit from accelerated time to cash, reduced costs, greater control and visibility and operational efficiencies.
Because trade finance involves collaboration between multiple parties, all Bolero Applications are built on the Bolero Exchange, a collaborative platform which supports all trade flows between all parties and across all locations. Each Bolero member only needs to connect once and then has common access to all other community members whilst remaining completely insulated from a trade partner’s specific technology and business process.
Bolero is more than a technology solution – it is a community of corporates, banks, insurers and logistics service providers operating in more than 46 countries and managing more than 550,000 trade transactions per month.
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