ArcelorMittal venture executes India's first 'paperless bill discounting transaction'

ArcelorMittal Nippon Steel, a joint venture between ArcelorMittal and Japan's Nippon Steel, executed the transaction in partnership with ICICI Bank.

Gujarat-based ArcelorMittal Nippon Steel (AMNS) India said on Sunday it has executed India's very first "paperless bill discounting transaction" in partnership with ICICI Bank.

ArcelorMittal Nippon Steel is a joint venture between ArcelorMittal and Japan's Nippon Steel (Reuters)

"In a step forward for digitising trade payments, AMNS India has executed the country's first domestic paperless bill discounting transaction," AMNS India said in a statement, adding that ICICI Bank acted as an intermediary between the the seller and the buyer, the steel maker's Baroda-based customer Vijay Tanks.

The statement also quoted AMNS India's deputy chief financial officer Amit Harlalka as saying that the move is a "positive step towards enabling the digitisation of trade payments" and that it "provides for better working capital efficiency for the company and trade partners."

The transaction, end-to-end electronic in nature, comprising digital issuance of letter of credit (LC), advisory and presentation of documents, took place among AMNS India, its customer, and ICICI Bank, the statement noted. ICICI Bank's branch in Baroda issued the LC to the buyer, Vijay Tanks, while its Hazira, Surat-based branch negotiated on behalf of the seller, AMNS India.

As evidence of the transaction flow, AMNS India was required to digitally present the documents to ICICI Bank, as required under terms of the LC.

AMNS India is a joint venture between ArcelorMittal, the world's leading steel and mining company with a presence in more than 60 countries, and Japan's largest steel producer Nippon Steel.

(With PTI inputs)