HSBC Armenia awards Trade Finance Best Customers

 June 15, 2016 - 18:30 AMT

PanARMENIAN.Net - HSBC Armenia on Wednesday, June 15 recognized and awarded its Trade Finance Best Customers for the seventh year in a row. In the past seven years, HSBC Trade Awards have become a benchmark for performance in Armenia’s trade finance industry.

Congratulating all five winners, HSBC CEO Thies Clemenz said the companies have performed impressively throughout 2015 and played an enormous role in developing their sector of business in the country. According to Clemenz , they have demonstrated growth, international connectivity, outstanding loyalty, as well as introduced innovative technologies.

“Geographic reach of HSBC network enables the bank to serve clients on both sides of a transaction and help them overcome obstacles and manage risk and liquidity costs more efficiently. HSBC Armenia trade specialists are uniquely positioned to connect customers around the world,” Clemenz said.

“According to HSBC’s observations, trade is increasingly about services which are more likely to be transmitted over the internet than across the ocean, as compared to trade in the early 20th century when international trade would mean a steamship with crates on board.”

“Services – the sale and delivery of intangible products to consumers – comprise “the largest and most dynamic component” of economies around the world, according to the World Trade Organization. The sector represents about 60% of world GDP and about ‎80% of GDP in some developed markets, and is growing fast not only in large emerging markets like China but also in Armenia. Growth can be seen in Armenia’s trade volumes of services like accommodation, entertainment as well as information and communication,” the CEO said.

“In the world of slow economic growth and recent industrial data showing a gloomy picture for the global economy services trade is a rare bright spot to be looked at. And we have made sure that one of today’s awards would go to a client engaged in the trade of services.”

HSBC Bank Armenia Deputy Head of Banking Arthur Petrosyan said, in turn, that HSBC was established in 1865 from one simple idea – to finance the growing trade between Europe, India and China.

“Not much has changed since then except for the fact that today HSBC Group serves more than 47 million customers in 71 countries and territories, including Armenia,” he said.

“HSBC’s geographic spread gives us the competitive advantages and an opportunity to tell to our customers that when and if your business crosses the borders of Armenia, HSBC can help you on both sides. This is the slogan we adopted seven years ago and follow to date, rewarding and encouraging clients that make the best use of these opportunities.”

The five winners who we honor today were recognized best trade customers of 2015 for demonstrating their innovative solutions, active participation in the development of their sphere and strong growth.

The five 2015 best trade customers honored on Wednesday were:

1. Best Trade Customer – International Trade Award: AES TRADE LLC (Anna Hovhannisyan, Financial Director)

The company reached outstanding achievements in international trade in 2015 and expanded its operation to the Georgian market. They have also succeeded in providing competitive pricing for their products produced locally.

AES Trade LLC has been represented in Armenia by Smart Line Profiles brand since 2013 and is engaged in production and sale of a wide range of PVC profiles and windowsills for doors and windows. By using HSBC trade finance solutions and in partnership with HSBC USA clients, the company succeeded in reducing production costs which resulted in ensuring reduced and competitive pricing for consumers.

2. Best Trade Customer – Best Innovative Trade Award: REDINET CJSC (Andranik Karamyan, Director)

The company was awarded for promoting implementation of energy efficiency projects in Armenia. In 2015 the company participated and won four major tenders for implementing energy efficiency equipment, totaling AMD1.3 billion.

Redinet CJSC was established in 2001 and since then has been carrying out activity in the sector of communication and informational technologies, holding its essential position in the Armenian, Georgian and regional telecommunication markets. The main mission of the company is design and turn-key construction of telecommunication units, supply, installation and integration of telecommunication equipment, as well as servicing and maintenance. In cooperation with HSBC, the company has implemented projects for installation of energy efficiency systems, as a result of which four large institutions of Armenia now use innovative and energy efficient systems. This is fully in line with HSBC’s principles and values of running a sustainable business.

3. Best Trade Customer – Best Newcomer Trade Award: HKG CJSC (Gagik Makaryan, Director)

Best new-to-bank and new-to-trade customer doing business internationally. This business has been selected to be awarded in this category due to largely disseminating the use of trade finance solutions for different spheres of their diversified business.

HKG CJSC is a family-owned business established in 1998 and is engaged in various speheres of production – feed production, poultry farm, pig farm, flour milling and production of alcoholic beverages. The company is currently workingon establishing a new brewery in Dilijan. Overall, this is a domestic business focusing on the local market and increasing its share in the country. Cooperation with HSBC has started in 2015 in scope of financing import of the production equipment required for the brewery in Dilijan. HSBC Netherlands and HSBC Czech Republic have also been involved for this transaction.

4. Best Trade Customer – CEO's Special Award: ARPANIV LLC (Artyom Khandanyan, Director)

Cooperation with this business dates back to 2008, with HSBC serving as the only financing bank for this business. It is for their loyalty, extensive usage of HSBC trade services and products that this business has been selected to be recognized in this category.

ARPANIV LLC was established in 2003. The company is engaged in import, wholesale and retail trade of tires and batteries produced in Russia, Ukraine, the United States, Japan and other Asian countries in Yerevan and other regions of Armenia. The company is also trying to enter foreign markets and currently succeeds with supplying products to Georgia and the U.S. The company has been HSBC Armenia’s borrowing customer since 2008 and during these years has demonstrated growth by expanding business to other markets. Currently the company works on a project with a top tire producing company “Goodyear Middle East” and plans to expand further.

5. Best Trade Customer – Grand Prix: ASCE GROUP OJSC (Vahan Harutyunyan, Member of Board of Directors)

Best trade customer of the year 1. Best customer in terms of GTRF products (LC) utilization volumes 2. Production due to which imported products are replaced with “made in Armenia” products at competitive pricing 3. Creation of workplaces

In 2015, HSBC Armenia issued the largest LC in its own history for this business, which will double the production capacity of the business and extended export opportunities.

ASCE Group OJSC was founded in 1995 and is one of the top producers of metal products used for construction purposes in Armenia. It is engaged in manufacturing and wholesale trade of reinforcement steel bars, wire rods and grinding steel balls. In 2007, the production was modernized and equipped with high quality German production lines and equipment. Starting from 2011 the company has invested over USD40m in construction and further modernization of its factory with the latest technologies. Thanks to its production quality, the company successfully competes with the importers of similar metal products in the local market. In 2015, with the help of HSBC Armenia trade finance solutions the company has been importing a new metal processing production line from The Netherlands, as a result of which will double its production capacity, create new workplaces and locally produce “made in Armenia” competitive products.