The solution is part of Deutsche BankÆs global electronic banking platform, db-direct Internet. It enables companies to receive export letters of credit (LCs) and create the corresponding documents accordingly.
ôAs PepsiCoÆs trade volumes in Pakistan grew rapidly, we were seeking to streamline our trade documentation process,ö says Sartoretti Stefano, chief financial officer for South Asia, Middle East and Africa at PepsiCo. ôThe solution processes all our trade documents electronically within less than 24 hours upon receipt of the respective letters of credit. This has resulted in reduced payment cycles, which goes a long way in optimising working capital.ö
The solution will also provide Pepsi with real-time access to commercial and financial information through its financial supply chain. It will help to improve liquidity, greater visibility and control over cash flows and to reduce business risks, the bank said.
The move comes as Pakistan continues to see an increase in investments, primarily within oil and gas exploration, telecoms and real estate.
ôThe regulatory framework here is also good; the central bank does not impose restrictions on repatriation of dividends and profits which may not be the case in other emerging markets,ö explains Faisal Zahid, Deutsche Bank's head of trade finance and cash management for Pakistan. ôThis is an attractive incentive and is one of the reasons as to why investments and associated trade volumes for multinational companies and large corporates continue to rise."
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