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Liquidity Management

An Integrated Oil and Gas Multinational

Automated BRL* receivables and centralized liquidity management


About

An Integrated oil and gas multinational that explores, produces and delivers energy. Its subsidiaries in Latin America also produce a range of automotive and industrial lubricants.

At a Glance

  • The oil and gas giant distributes its lubricants across the country where it operates and requires broad coverage for local receivables. It decided to move part of its Boleto collections to J.P. Morgan to diversify its counterparty risk and benefit from full integration and visibility through J.P. Morgan Access®
  • J.P. Morgan Brazil leverages a strategic network partner to provide the necessary wide local coverage and best-in-class service. Customers work exclusively with J.P. Morgan systems and personnel

The Challenge

For reconciliation purposes, one of company’s requirements was to obtain details of their receivables using Boleto.

Additionally, it needed full visibility over its accounts, including USD, EUR and BRL, as well as a bank partner in Brazil with strong counterparty risk.

Brazil Landscape

Boletos are the main receivables instrument in Brazil. They are a paper slip with a bar code and unique 44-digit ID code, which provides efficiency when reconciling incoming payments.

J.P. Morgan Boleto collection leverages a wide country footprint through a partnership with one of the largest local banks in Brazil. This is carried out on behalf of the client, who only faces J.P. Morgan.

The J.P. Morgan Solution

Provide a BRL account in Brazil with Boleto receivables, H2H payments, and a USD account for the Brazilian entity to manage export proceeds.

With a harmonized receivables centralization process combining J.P. Morgan’s BRL Boleto solution and a NY USD clearing account for export proceeds, the company’s team is able to use J.P. Morgan Access® and manage their receivables flows, increasing visibility and control.

Elisabete Marchesini, Brazil Treasury Services Coverage

The Impact

  • Automatic process using the company’s ERP with a pre-approved Boleto receivables file sent to the bank – no manual intervention.
  • Automatic reconciliation for Boleto receivables.
  • Full visibility of local and offshore accounts in J.P. Morgan Access®.
  • Export funds can be received in USD, providing a range of investment alternatives and natural hedging.

J.P. Morgan is the marketing name for the Treasury Services business of JPMorgan Chase Bank, N.A. and its affiliates worldwide.

©2018 JPMorgan Chase & Co. All rights reserved. JPMorgan Chase Bank, N.A. Member FDIC.

The products and services described in this document are offered by JPMorgan Chase Bank, N.A. or its affiliates subject to applicable laws and regulations and service terms. Not all products and services are available in all locations. Eligibility for particular products and services will be determined by JPMorgan Chase Bank, N.A. or its affiliates.

JPMorgan Chase Bank, N.A. at its London Branch is authorised by the Office of the Comptroller of the Currency in the jurisdiction of the U.S.A. Authorised by the Prudential Regulation Authority. Subject to regulation by the Financial Conduct Authority and to limited regulation by the Prudential Regulation Authority. Details about the extent of our regulation by the Prudential Regulation Authority are available from us on request (Firm Reference Number: 124491)

JPMorgan Chase Bank, N.A. (Johannesburg Branch) is an Authorized Financial Services Provider (FSP No. 7795). An external company registered in South Africa with the registration number 2001/016069/10.

Registered in South Africa as a branch of a foreign bank, JPMorgan Chase Bank, N.A. and operates under a banking license and is regulated by the South African Reserve Bank.

All complaints must be directed to Compliance on jhb.compliance@jpmchase.com

Details of FAIS Ombud
Office of the FAIS Ombudsman
Name: The Ombud for Financial Services Providers
Postal Address: PO Box 74571, Lynnwood Ridge, 0400
Telephone number: 012 762 5000 / 012 470 9080
Facsimile number: 012 348 3447
Email Address: info@faisombud.co.za
Website: www.faisombud.co.za

For Brazil: Ombudsman J.P. Morgan: 0800-7700847 / ouvidoria.jp.morgan@jpmorgan.com