DBS, MPA complete live bunker delivery financing pilot with digital bunker delivery note

This successful pilot is a first for Singapore, and demonstrates the viability of digitalised bunker financing.

DBS, with the support of the Maritime and Port Authority of Singapore (MPA) and in partnership with Trafigura Group’s TFG Marine, has completed Singapore’s first live bunker delivery financing transaction by way of electronic bunker delivery note (eBDN).

The digitalisation of bunker delivery notes is one of many pivotal steps necessary to transition Singapore’s bunkering sector into the digital era and to ensure our port and shipping industry is future-ready. The objective is to co-create an end-to-end digital workflow that enhances efficiency and transparency for bunker trades, while building trust with banks and shipowners which are fundamental to the long-term growth and development of Singapore’s bunker ecosystem,” said DBS Group's Trade Product Management Head Sriram Muthukrishnan in a statement.

Currently, banks rely on physical BDN copies before a trade finance application can be submitted, a process that can take a few days to a week.

The eBDN would allow future clients to obtain financing for their underlying trade-in under two hours, enabling them to obtain working capital faster.

DBS noted that physical BDNs also have a higher risk of being manipulated than their electronic counterpart, as counterparties would be able to ascertain the trade data at source.

The live pilot transaction is a part of a joint agreement between DBS and MPA, signed in 2020, to accelerate the digitalisation and innovation of financial services and payments across Singapore’s maritime industry.

The next phase of development would be to integrate the use of digital BDNs with SGTraDex once the digital utility is operational in 2022.

Join Singapore Business Review community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Around 56% of Singaporeans overspend their money during the season.
In 2021, GDP growth hit 7.1%.
The spectrum boost will deliver significant 5G coverage Australia-wide.
Over 270 entries were received from more than 25 countries.
Micro-businesses cited lack of funds as a barrier to technology adoption.
The supervisory roundtable was held virtually.
Winners will be awarded from the first to the second week of December.
Singtel had the most growth for the day.
Its performance improved in two categories.
The expected increase will be driven by three factors.
The two also discussed post-pandemic recovery.
It also recorded a strong performance for H1 2021, despite a net loss of $150.6m.
Jigger & Pony found itself retaining its ninth ranking.
The moderate increase was driven by expansions in five out of six indicators.