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July 22, 2021updated 09 Mar 2022 11:04am

DBS and team conclude Singapore’s first digital bunker financing pilot

ONE and Ascenz provided the underlying technology for the digitalisation of the bunker delivery note.

Singapore’s DBS and partners have concluded the country’s first live bunker delivery financing pilot transaction.

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The pilot transaction was completed in collaboration with TFG Marine, Ocean Network Express (ONE) and Ascenz, with support from the Maritime and Port Authority of Singapore (MPA).

As part of the project, ONE and Ascenz offered the underlying technology for the digitalisation of the bunker delivery note (BDN).

A BDN is used as the primary method in bunker trade. It records the quantity delivered to a customer and gathers information required to document product quantity.

The pilot transaction demonstrated that clients will now be able to receive financing for their underlying trade in less than two hours.

As a result, they will be able to manage their cashflows, as well as secure working capital sooner.

The digital BDN will also help in eliminating the risk of fraud in the bunker sector.

In a statement, DBS said: “With the digitalisation of the BDN, this risk is mitigated as counterparties are now able to ascertain the trade data at source. This is done by leveraging the Mass Flow Meter (MFM) system for bunkering electronically.

“This helps to provide greater transparency and certainty to participants in the bunker trade supply chain ecosystem.”

Last year, DBS and MPA signed a joint agreement to push the digitalisation of financial services as well as payments across the country’s maritime industry.

As agreed, the companies will work together in the areas of organising and enabling payment transactions between the users of maritime services and digitalising auxiliary documents for financing.

They will also support the innovation and development of potential new financial solutions through the ecosystem of startups.

Under the upcoming phase of development, the business entities are aiming to merge the use of digital BDNs with SGTraDex after the digital utility becomes operational next year.

DBS further added: “Developed by public and private sector partners led by the Alliance for Action (AfA) on Supply Chain Digitalisation, SGTraDex is a common data infrastructure launched in July 2021 to facilitate trusted and secure data sharing across supply chains.”

In April, MPA signed two agreements to advance decarbonisation efforts in the maritime industry, one of which includes the launch of a $90m (S$120m) fund for this purpose.

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What’s missing from your IPO industry assessment?

IPO activity all but stopped in 2020, as the investment community grew wary of the effects of COVID-19 on economies. No matter how deserving a business was of flotation, momentum was halted by concerns of when a ‘new normal’ of working patterns and trade would set in. Recently, sentiment has changed. Flotations picked up again during the second half of 2021, and now in 2022 the mood is decidedly optimistic. Business leaders have their eyes on fast rebounding economies, buoyant market indices and the opportunity once again to take their businesses public. As a result, global IPOs are expected to hit back this year. With GlobalData’s new whitepaper, ‘IPOs in Consumer and Retail: 5 must-include elements for your prospectus industry report’, you can explore exactly what is needed in the essential literature. GlobalData’s focus lies in the critical areas to get right:
  • Macroeconomic and demographic environment
  • Consumer context
  • Industry environment
  • Competitive environment
  • Route to market
Interested to learn more about what to include in your IPO Industry Assessment report? Download our free whitepaper.
by GlobalData
Enter your details here to receive your free Report.

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