Shell has set a benchmark for treasury best practices by utilising a primary bank model approach to meet Sprng’s banking needs, especially for a complex renewables business operating in India’s highly regulatory environment. By combining best in class treasury technology tools and customised solutions in cash, liquidity, investment and FX management as well as funding, both Shell and Sprng have achieved greater automation and centralised treasury control to drive operational efficiencies within its fast-growing business.

The group also demonstrated its innovative mindset in solutioning, working closely with HSBC to customise solutions to cope with Sprng’s business needs. These include designing multiple multi-entity cash concentration structures to support Sprng SPVs at various lifecycles, mapping out alternative ways to inject capital in the form of OCDs, manage FX risks using a holding company/ treasury centre to hedge OCDs via onshore and offshore markets, as well as exploring ideas on reducing trapped cash in India through collateralised lending, LC discounting and payment-on-behalf-of (POBO) structures.

Leveraging sophisticated ERP and connectivity solutions, Shell will equip Sprng with fully automated solutions that reduce manual efforts, empowering Sprng’s teams to focus on meeting strategic priorities rather than funding and banking concerns.