SC Jeil Bank Partners with Secondary Battery Material Company... Signs 210 Billion KRW TRD Contract

POSCO Chemical and L&F Sign Accounts Receivable Purchase Agreement
Expect Shortened Delivery and Payment Settlement Periods

[Asia Economy Reporter Minwoo Lee] Standard Chartered Korea has partnered with POSCO Chemical and L&F, suppliers of electric vehicle battery materials, to sign a sustainable trade finance agreement. The purpose is to provide multifaceted financial support to help companies transition to eco-friendly industries.

On the 17th, Standard Chartered Korea announced that it had signed ESG (Environmental, Social, and Governance)-related supply chain finance accounts receivable purchase (TRD) contracts with POSCO Chemical and L&F, respectively. The contract size is $100 million (approximately 119.8 billion KRW) for L&F and $80 million for POSCO Chemical.

TRD is a type of factoring product where the seller (supplier) delivers goods to the buyer and transfers the corresponding accounts receivable to the bank. Within an agreed limit, the bank advances the payment to the seller and later collects the payment from the buyer on behalf of the bank. This shortens the period between delivery and payment settlement, thereby enhancing business efficiency.

This TRD transaction is classified as an eco-friendly transaction involving "renewable energy" at the final usage stage and has been certified as a "sustainable finance transaction" by the Standard Chartered (SC) Group. The SC Group certifies transactions as sustainable finance if they involve ▲sustainable products and services ▲sustainable suppliers ▲sustainable end use ▲transition industries. In 2019, the SC Group established a "Sustainable Finance Team" based in London, Singapore, Hong Kong, Dubai, and Nairobi, Kenya, providing ESG deposits, project financing, bond issuance, derivatives trading, and trade finance.

Jongbok Park, CEO of Standard Chartered Korea, said, "ESG management and the transition to carbon neutrality are essential for all companies, including our bank. Through expanding green finance, we will remove financial barriers hindering the transition to carbon neutrality and prepare multifaceted financial support measures to help our clients transition to more eco-friendly industries."

This content was produced with the assistance of AI translation services.