BB Energy, Komgo and SGTraDex enter into MoU to collaborate on the digitalisation of borrowing base financing
A strategic partnership has been unveiled among SGTraDex, BB Energy, and Komgo, signifying a significant advancement in digital trade financing. The trio solidified their collaboration by signing a Memorandum of Understanding (MoU) on August 18, 2023.
With a focus on boosting efficiency and innovation, this partnership aims to elevate the conventional trade finance landscape, offering unparalleled verification, fraud detection, and risk mitigation capabilities.
Driving Efficiency Through Digital Integration
With a strong track record as a Digital Agent for borrowing bases across Europe, the US, and Asia, Komgo, in collaboration with SGTraDex’s data highway and BB Energy, aims to harness digital innovation by integrating SGTraDex’s data highway. This integration promises enhanced interoperability, transparency, and operational ease.
Nicolas Djelalian, Managing Director of Komgo Pte Ltd, stated: “Our partnership with SGTraDex and BB Energy is a testament to our commitment to generating value for both borrowers and lenders through tangible use cases. This robust integration with a modern and trustworthy data source unlocks benefits for all, reinforcing Komgo’s position as an aggregator of trade finance flows and technologies.”
End-to-end Digitalisation of Borrowing Base Drawdown
BB Energy envisions leveraging SGTraDex’s data highway to facilitate the exchange of essential documents through Komgo’s platform, streamlining borrowing base drawdowns with financing banks. A drawdown refers to the process of accessing funds or credit from a financing facility based on specific terms and conditions.
Anbu Ramasamy, Regional CFO, Asia Pacific, stated: “BB Energy Asia takes pride in being at the forefront of this initiative as the first commodity trader to take this progressive step. Embracing digitalization is crucial when addressing governance and instilling confidence in liquidity providers. This empowers banks to extend financing more securely and efficiently. With BB Energy’s domain expertise and the robust digital infrastructures of SGTraDex and Komgo, this partnership will create a dynamic and distinctive offering that has the potential to lead the industry towards a shift in efficient and transparent structured trade finance operations.”
A Dynamic Framework for Collaboration:
The terms of the MoU, designed for adaptability, ensure that the alliance remains aligned with the evolving demands of the industry. Both SGTraDex and Komgo are committed to supporting BB Energy’s financing transactions with their financing banks, showcasing their roles as industry pioneers.
This partnership perfectly encapsulates the spirit of innovation and collaboration that drives SGTraDex and Komgo’s efforts in reshaping the digital trade financing landscape. With the imminent borrowing base drawdown and a unified commitment to advancing the industry, the partnership’s potential to bring about positive change remains paramount.
Kelvin Ling, Head of Operations and Business Development at SGTraDex, summarized the collaboration: “This strategic partnership serves as a testament to our dedication to propel digital transformation within supply chain trade financing. The signing of the MoU marks the commencement of a journey where SGTraDex, BB Energy, and Komgo collaborate to enhance operational efficiency and foster innovation in the industry. Our openness, neutrality, and emphasis on interoperability between systems will continue to shape this partnership as we nurture relationships with industry solution providers.”
Founded in the 1960s by the Bassatne Family, BB Energy has over 50 years of operational history. Over the last decade, it expanded trading operations beyond the Mediterranean, emerging as a leading independent global energy trading company. Engaged in trading Crude, Refined Oil Products, LNG, and LPG, BB Energy is diversifying into Renewables. With key hubs in London, Dubai, Houston, and Singapore, BB Energy achieved a turnover of US$24 billion in 2022, trading 31 million tonnes of crude, petroleum products, and gas.
Komgo, a leading software and technology firm, is transforming trade finance. Our innovative solutions empower over 10,000 global users in Treasury, Credit, and Trade Finance. With offices in Singapore, Paris, London, Toronto, and Houston, we serve 200+ multinational corporations and global trade banks. Together, we’re creating a trusted, transparent global trade execution environment. The Komgo Network handles around USD 1 billion in daily transactions.
Launched on June 1, 2022, Singapore Trade Data Exchange (SGTraDex) is a digital utility facilitating data sharing among supply chain partners. Through a common data highway, information is streamlined securely. SGTraDex, a public-private partnership by IMDA, PSA, Trafigura, and others, uses proprietary technology to address supply chain issues like inefficiency, lack of transparency, and reliance on paper-based systems.
Source SGTraDex Singapore Trade Data Exchange