A full electronic back-to-back letter of credit (L/C) transaction in China has been completed for the first time over Bolero's cloud-based platform.

The transaction involved the full electronic presentation against an L/C for copper concentrates, including electronic bills of lading, using Bolero's proprietary ePresentation solution.

Counterparties

The entirely paperless process involved several counterparties including BHP Billiton joint venture Minera Escondida Limitada, Hong Kong Xiangguang International Holdings Limited and Yanggu Xiangguang Copper Co Ltd.

The master L/C issuing bank was Agricultural Bank of China while the carrier was Oldendorff Carriers, which created the electronic bill of lading.

Growing mechanism

According to Bolero, the electronic presentation process is fast becoming an important transaction mechanism for international exporters and producers.

Bolero says US$7 billion of such presentations have been processed over its platform in the last 12 months.

Buyers typically include large manufacturers and trading organisations specialising in commodities.

This article represents the views of the author and not necessarily those of the ICC or any of the other partners in DC-PRO.