HSBC: Executes its first SOFR linked trade finance transaction in India
- HSBC announced the completion of its inaugural trade finance transaction linked to SOFR in India
- This financing was provided to Brookfield Renewable, the operator of one of the world’s largest pure-play renewable power platforms
- The documentary credit has been discounted for a period of close to 3 years using Overnight SOFR
- This transaction represents another step forward in the market transition of interest rate
benchmarks - Bank was also the hedge provider on this transaction, thereby allowing the client to hedge their currency risk
- It enables its customers to seamlessly conduct international business transactions, in particular, financing, trade, and global markets
