The Banking Executive, Issue 155, November 2021

SABB SABB LAUNCHES NOVEL SUPPLY CHAIN FINANCE SOLUTION The Saudi British Bank (SABB) has launched a shariah compliant supply chain finance (Payables Finance) so- lution, a first transaction of its kind in the kingdom. in line with Vision 2030 initiative to increase financing to the SME sector and help meet the customers’ needs. The Payables Finance concept is based on a buyer risk where seller is bearing the cost of discounting. This product gives suppliers access to funding based on the credit standing of their buyers and without using their own credit lines. On the innovative scheme, Majed Najm, Deputy Managing Director of Corporate and Institutional Banking at SABB, said: "This comes within the bank’s continuous endeavors to con- tribute to achieving the kingdom’s vi- sion and play our role as a major financial institution to stimulate eco- nomic and commercial growth." Najm said: "In addition to our ap- proach to innovating quality banking products in the market, SABB is well positioned to leverage its local ex- pertise and broad international pres- ence through HSBC’s network to lead the market in order to support businesses in the Kingdom in line with Vision 2030." "This solution will open up new av- enues to customers to better manage their budget by classifying payables as commercial without classifying them as financing in their balance sheets. It also gives the customer bet- ter opportunities to negotiate credit terms and prices with suppliers," he stated. "Therefore given the benefits to all parties, this structure is expected to be very popular, especially given the fact that its Shariah-Compliant," he added. SABB is a leading bank in the field of trade finance, and has achieved pri- ority in offering many products and services aimed at enhancing the role of trade finance, digitization and sus- tainability, in an effort to stimulate the economy and develop business sectors.- ISSUE 155 NOVEMBER 2021 the BANKING EXECUTIVE 29