Solutions for Buyers - Corporate and Investment Banking

Corporate and
Investment Banking
Open Account Trade and Supply
Chain Financing – Solutions for Buyers
Solutions for Buyers
Standard Bank – your trade partner in, for and across Africa
Open Account Trade and
Supply Chain Financing
All trade transactions require financing that is provided by
either the buyer or the seller. As a buyer, if you pay cash on
delivery, you must finance the period between obtaining
the goods and then selling them. If the seller gives you
longer payment terms, then they may look to a lender for
accelerated payment of the receivable at an appropriate
discount rate.
Whatever your payment terms, a key consideration on
your working capital is the timing difference between cash
outflows (including supplier costs, salaries and facility costs)
and cash inflows from sales activity.
With extensive experience in supporting importers,
Standard Bank has the expertise and solutions to help
improve working capital in your business. We work with you
to understand your specific business needs; for instance we
consider areas such as:
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Solutions for Buyers
•The impact of dealing with longer supply routes
coupled with infrastructural bottlenecks necessitating
you to hold more stock on hand in order to minimise
operational disruptions.
Your business stands to benefit from Standard Bank’s
leading financing solutions.
Invoice finance
Standard Bank provides short-term finance against copies
of commercial invoices drawn and evidence of shipment
to settle open account trade. We make a payment on your
behalf to your supplier directly against your short-term loan
facility. This solution structure is ideal where you have a few
periodic payments that you make to suppliers.
You benefit from having more financial resources to pay
suppliers upon delivery without worrying about the time
it takes to manufacture and sell. Your suppliers are also
not involved in raising finance and they receive payment
as per contract.
This solution is priced relatively cheaper than a general
overdraft and is easy to use.
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Buyer
1. Deliver goods
and invoice
Seller
4. Debit buyer on maturity
•Early payment to suppliers enabling significant price
discounts and stronger relationships
Transaction process for invoice finance
2. Request, commercial
invoice + evidence of shipment
•Instances where payment for raw materials or goods is
due upon delivery and you have not sold and collected
cash to pay for them
Buyer’s
bank
3. Disburse loan proceeds directly
1. The Seller delivers goods and invoices the buyer
(our customer).
2. Our customer requests a drawdown on their invoice
finance facility with Standard Bank by submitting copies
of the commercial invoice and proof of shipment.
3. Standard Bank draws down on short-term loan facility
and makes payment directly to the supplier’s bankers.
4. On maturity, the loan is settled by the buyer, primarily
from proceeds of sale of goods.
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Solutions for Buyers
Transaction process for supplier chain finance
Ongoing contract of purchase and sale between buyer and suppliers
1. Purchase order raised
2. Supplier delivers goods and presents invoices
Buyer
Seller
3. Supplier sends discounting request to buyer for acceptance
•
Supplier finance/reverse factoring is aimed at leveraging on
your financial strength as a buyer to enable Standard Bank to
pay or facilitate payment of, amounts due to your strategic
suppliers that are critical to supply chain. This solution is
suitable for buyers with large-scale operations and numerous
suppliers who provide vital inputs into your business.
Extension of days payable outstanding
The buyer is able to extend its credit repayment terms
thereby meeting their primary objective cheaper than
if they were to borrow on their own.
•
Leveraging our experience in supplier chain finance, you
derive benefits;
Liquidity & Working capital efficiencies
The strategic suppliers are able to experience an
acceleration of receipts resulting to positive cash
balances which they can use continue running their
business operations.
•
•
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Working Capital optimization through payments and
receipts matching;
The extension of the payment terms provides the
buyer with the ability to optimize their working
capital by matching the receipt of funds with their
payment obligations.
•
7. Settlement by buyer at
invoice maturity date for
full invoice value
Supplier chain finance reverse factoring
5. Supplier presents invoice
schedules and discounting
request to Standard Bank
Buyer’s
bank
Cheaper funding
The suppliers are able to get better funding rates on
the strength of the buyer company’s balance sheet.
Improve the efficiency of payments and reconciliations.
4. Buyer provides accepted disounting request to supplier
6. Standard Bank pays suppliers discounted invoice value on day 1
Procurement
initiation
Discount date
Time
1
R
R0
2
3 4 5
Interest cost borne
by supplier
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R95
7
A
R100
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Solutions
Private
for Buyers
Equity
Connecting Africa and the world
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. Whether the underlying trade is
settled by advance payment, a letter of credit, import
collection or open account, we have the right trade
financing solutions for your business.
Due to regional and in-country 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.
Presence in pools of capital in deveoped markets.
Presence in selected emerging markets.
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Solutions for Buyers
Standard Bank Group Awards and Rankings 2012 – 2014
African Investor 2013
African Banker 2013
Bloomberg - The World's Top 20 Green
Banks 2012
Environmental Finance
•Bank of the Year
•
Deal of the Year: Umeme IPO
•
Fixed Income Deal of the Year: Ghana
Seawater Desalination Project
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•
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
•
Overall ranking: 12
•
Best Bank in South Africa
•
Clean-Energy Investments ranking: 17
•
Best Investment Bank in South Africa
•
Reducing Environmental Impact
ranking: 15
•
Best Investment Bank in Tanzania
•
Best Investment Bank in Uganda
•
Best Broker in Nigeria
•
Best Asset Manager in Nigeria
•
Best Global Origination Firm – Kyoto Credits.
emeafinance Achievement Awards 2012
•
emeafinance African Banking 2013
Best syndicated loan house in Africa
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 sovereign syndicated loan in Kenya
•
Best supranational syndicated loan: Afreximbank
•
Best M&A house in Africa
•
Best telecoms deal in EMEA: MTN Ghana's network expansion
•
Best M&A deal in Africa: Tiger Brands buys Dangote Flour Mills •
Best water deal in Africa: Desalination plant, Ghana
•
Best corporate bond in CEE: Mongolian Mining Corporation
•
Best corporate bond in Africa: JD Group
emeafinance Treasury Service 2013
•
Best local currency bond (shared): Lagos State Government
•
Best treasury services in Africa
•
Best IPO in Africa 2012: Umeme Limited
•
•
Best follow-on funding in Africa: Flour Mills of Nigeria
Best transactional bank for financial
institutions in Africa
•
Best securtisation house in Africa
•
Best securitisation deal in EMEA: SA Home Loans
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Solutions for Buyers
Standard Bank Group Awards and Rankings 2012 – 2014
Global Finance World’s Best
Sub-Custodian Banks 2013
•
Best Subcustodian in Nigeria, Stanbic IBTC Bank
Global Investor 2013
•
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
Newsweek 2012
•
Standard Bank ranked as South Africa’s
greenest company
PMR.africa 2013
•
Diamond Arrow (highest ranking) award
in the PMR South African survey of
corporate users of foreign exchange
Project Finance Deals
of the Year 2012
•
African Mining Deal of the Year:
Konkola Copper
PWC survey 2013 - ranked1st
•
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
Risk South Africa 2013 – ranked 1st
GTR Leaders in Trade 2013
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•
Sub-Saharan Non-Rand Products in the
following Asset Classes:
•
Interest Rate products
•
Foreign Exchange products
•
Equity products
Risk Awards 2014
•
Global Emerging Markets Dealer of
the Year
Sunday Times/TNS Top Brands survey
•
Ranked number 1 in the consumer
banking category in South Africa
Best Trade Bank in Sub-Saharan Africa
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Solutions for Buyers
Standard Bank Group Awards and Rankings 2012 – 2014
Euromoney
Awards of Excellence 2013
Euromoney Deals of the Year 2012
Euromoney’s Real Estate Survey
2013 – ranked 1st
Best Investment Bank in Africa
•
Best Bank in South Africa
•
Best Risk Adviser in Africa
•
Best Equity House in Africa
•
Deal of the Year Award: Joint bookrunner
for Namibia’s debut USD500 million
Eurobond
•
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
•
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
FX Week Best Bank Awards 2013
•
Best Bank for South African Rand
The FT/IFC Sustainable
Finance Awards 2013
•
Sustainable Bank of the Year, Africa
and the Middle East
Euromoney Annual
Africa Research Poll 2013
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•
Forbes Global Top 500
Banking Brands 2013
•
The most valuable banking brand in Africa
FM Top Companies 2013
•
Standard Bank Group Ltd has ranked in the
Top 10 ‘South African Giants’
Global Finance World’s
Best Investment Banks 2013
•
Best Investment Bank in South Africa
•
Best Investment Bank in Angola
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
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 &
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 Finance World’s Best
Sub-Custodian Banks 2014
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Solutions for Buyers
The Banker
Deals of the Year for Africa
2013
The Banker Top 500 Bank
Brand 2013
The Imbasa Yegolide Awards 2013
•
Structured Finance: Skye Bank
•
Real Estate Finance Alice Lane
•
M&A: Tiger Brands
•
Equities Lonmin rights issue
•
•
Ranked number 1 Bank Brand in South Africa
and Africa
FM Top Companies 2013
•
Standard Bank Group Ltd has ranked in the
Top 10 ‘South African Giants’
Global Finance World’s
Best Investment Banks 2013
•
Best Investment Bank in South Africa
•
Best Investment Bank in Angola
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
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
Custodian of the Year, South Africa,
Standard Bank Investor Services
Trade Finance Awards for
Excellence 2013
•
Best trade bank in sub-Saharan Africa
•
Best South African trade bank
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 Trade
Finance Banks 2014
•
•
Best Trade Finance Bank in Africa and
South Africa
Trade & Forfaiting Review 2012
•
Commercial Deal of the Year:
Export Trading Group deal
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
•
Best sub-custodian in South Africa and
Treasury Management
International 2013
•
Best Risk Management, Africa
•
Best Cash Management, Africa
World Finance Magazine 2013
•
Greenfield Deal of the Year – Kwale
International Sugar Company Limited (“Kiscol”)
Global Investor
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Nigeria (2013)
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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/0860 487 233
Visit our website at www.standardbank.co.za
(select Corporate and Institutions, click on Products
and Services, and click on International Trade Services
under Transactional Services)
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Authorised financial services and registered credit provider (NCRCP15)
The Standard Bank of South Africa Limited (Registered Bank) Reg. No. 1962/000738/06 SBSA 186906-8/14
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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