How BOCHK’s cash management solution simplifies the business complexities for global infrastructure companies

The infrastructure industry is a good example of a business that requires tailormade cash management solutions. Infrastructure construction enterprises have a unique "project-based" management mode, where each contracted assignment needs to be independently accounted for. Discrete accounts are therefore required for income and expenditure management.

A significant number of these contracted projects are operated via non-physical departments. These non-physical entities are different from a more conventional corporate structure and often encounter difficulties in opening accounts. To add to the complexity, infrastructure construction enterprises have to contend with scattered offshore funds and accounts, since they often operate in diverse geographies and regions. Several projects are located in developing nations in Asia, Africa, Europe, and South America as a part of “the Belt and Road” initiative.

In keeping with its commitment to provide customers professional and high-quality services, BOCHK has a comprehensive and tailored cash management solution in place.

Consider the example of C Group —a leading global comprehensive service provider of ultra-large infrastructure, and one of the largest construction conglomerates, with business operations spanning over 100 countries and regions. The needs of the C Group included intensifying the centralised management of overseas accounts and funds, while strengthening the efficiency and usage of overseas fund management. To address these requirements, BOCHK provided a tailor-made solution of opening payment-and-collection-on-behalf-of (POBO) accounts for the conglomerate.

Payments of overseas subsidiaries are now made by the treasury centre through POBO accounts in Hong Kong. Funds will be automatically pulled from the master account to a subsidiary whenever a payment is triggered. This service not only improves the settlement efficiency of the member units but also the timeliness of fund return. The bespoke cash pool structure which combines local and cross-border automated concentration with the POBO accounts, is an innovative and leading solution in the banking industry.

This project marks a first breakthrough and is a creative solution for construction and engineering contractors. Implementing this project and providing extensive banking products and services via a centralised, digitised, and integrated treasury management solution helps BOCHK address the pain points and achieve notable results.

With extensive experience in working with large enterprises, BOCHK values timely summaries of project experiences. Successful customised approaches can thus be refined and transformed into solutions that can be deployed across the industry. The successful implementation of this solution for C Group has a strong impact on replication and promotion. BOCHK has accumulated valuable experience in building a global treasury system for follow-up services targeted at similar customers.

Disclaimer: Information in this article is for reference only and does not involve any promotion of products or services.