HSBC Global Payments and Cash Management has been appointed to provide liquidity management services to CLSA Asia-Pacific Market's ("CLSA") operations across Asia.
CLSA operates a number of entities across different markets in Asia, with a central borrowing entity at a group office level in Hong Kong, its global headquarters. The management of cash was left to the individual entities, resulting in some entities operating with short positions requiring group funding while others ran positive cash positions. CLSA was looking to bridge the gap between their debit and credit positions across their businesses, enabling them to reduce borrowing costs significantly.
Brendan McGraw, Group Treasurer at CLSA, commented on the appointment of HSBC, "When looking for a banking partner to help us manage our liquidity across our business, it was clear to me that some banks had much more expertise than others. I quickly identified HSBC as the strongest regional player in cash management, and they were able to set up innovative liquidity solutions for us, while their consultative approach helped us understand various local regulations across the region. With HSBC's solutions, I am confident that our cash management will run more efficiently and effectively."
The regional structure implemented for CLSA across nine Asian markets is based on HSBC's Global Liquidity Solutions (GLS) platform, specifically dedicated to advanced liquidity management services. The regional structure comprises a number of multi-currency notional pools to consolidate and offset mismatching positions across CLSA's business entities, combined with an Interest Enhancement cross-border virtual pooling arrangement to optimise the return on their other operational balances.
Robin Phillips, HSBC's Head of Global Banking and Markets, Asia Pacific, said, "The appointment of HSBC to provide liquidity management services to CLSA underlines the solutions-oriented nature of our Global Banking coverage model. We have been continuously engaging with CLSA across multiple product initiatives, a number of which required the delivery of bespoke solutions. The implementation of this set of liquidity solutions is another positive step in the growing relationship between the two organisations."
HSBC has also assisted CLSA to streamline and simplify their payment process and has installed a direct interface between CLSA's ERP system and HSBC's internet banking platform, HSBCnet.
John Laurens, Regional Head of Global Payments and Cash Management, HSBC Asia Pacific, stated, "With the increasing intensity of focus by corporations and institutions on the optimisation and use of internal liquidity, visibility and control over their cash is becoming a top priority. We are therefore pleased to be able to deliver to CLSA an innovative set of liquidity solutions to address their specific needs and improve their liquidity and working capital management across Asia."
With HSBC's liquidity structures in place, CLSA is making more efficient use of their excess cash to offset their group debit position along with better visibility and control over their funds. Furthermore, by using HSBC's Integrated Payables Solution, which features the very latest in SAP integration technology, CLSA has also been able to centralise and streamline accounts payable management processes. Combining HSBC's liquidity and payables solutions delivers benefits across the CLSA group as a whole, enabling better utilisation of funding lines to support continued growth of the business.
HSBC recently expanded their Global Liquidity Solutions (GLS) platform to Japan and Australia. The platform delivers stronger, richer and more flexible functionality that integrates and complements the existing domestic and cross-border liquidity services in all locations where HSBC operates.