Treasury Products

The ultimate goal is to manage the firm's liquidity and mitigating its operational, financial and reputational risk.

Giving you more opportunities to invest.

Treasury products include a firm’s collections, disbursements, concentration, investment and funding activities all round

Spots

Commodities and securities market, transactions are cash based and delivered immediately. Contracts are usually immediately effective.

  • Transaction done on the spot
  • Delivery in 48 hours (sometimes up to 7 days)
  • Sale/purchase against base currency
  • Short term financing needs
  • Simple product
  • Known cost
  • Good credit rating with bank
  • Pre-determined credit limit
  • Application Process

 

 

Bonds

It’s a debt security i.e. a long term financial obligation or secured loan issued through underwriting or auctions by either the government or corporate organisations.

  • Long term debt instrument.
  • It is listed on the stock exchange and is therefore tradable.
  • Government bonds are tax-free

Treasury Bills

It is a short-term negotiable bill of exchange used by governments to help finance national borrowing requirements, quoted for purchase/sale in the secondary market on an annual percentage yield to maturity. It is also issued at discount.
  • Short-term debt instrument.
  • Issued at zero coupon rates i.e. no interest paid during the life cycle of the bill.
  • Issued in fixed tenures i.e. 91 days, 182 days and 364 days.
  • T-bills qualify as liquid assets for the purpose of liquidity ratio computation.
  • Used as collateral securities for repurchase transactions.
  • Interest received not subject to tax.

 

 

Money Market Deposits

Cash transactions made with deposit money banks either secure or non-secure.
  • Transaction depends on limit for counter parties.
  • Can be secured or unsecured.
  • Can be Open Buy-Back or Fixed Buy-Back.
  • Simultaneous transfer of funds and securities by both counter-parties.

Commercial Papers

Money market security issued by large banks and corporations mostly used to purchase inventory or as working capital.

  • Discounted, that is, interest bearing.
  • Credit risk of issuer (usually rated).
  • Short maturities.
  • Can be clean or guaranteed.

 

 

Bankers' Acceptance

Short term discount instrument used in the course of international trade drawn on and accepted by banks which are obliged to pay the face value on maturity.

  • Short term negotiable discount note.
  • Bank guarantees on behalf of buyer to pay seller by accepting time draft.
  • Typical tenor usually six months.