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09.06.2011

Bank Austria with new type of financing for international corporate clients

  • Innovative "Umbrella Facility" means CEE subsidiaries of Austrian companies now have faster access to short-term financing
  • Facility based on current credit rating of Austrian parent firm, volume up to EUR 10 million or equivalent
  • Initial launch in 10 countries of Central and Eastern Europe

In view of the growing international activities of Austrian businesses and the economic recovery in Austria and CEE, Bank Austria has developed a new type of financing product. The "Umbrella Facility" of Bank Austria now gives Austrian companies generating annual revenues of at least EUR 3 million and their subsidiaries in Central and Eastern Europe faster cross-border access to short-term credits. The Umbrella Facility has a maximum term of one year and may amount to no more than EUR 10 million or the equivalent in local currency. The key benefit of this facility is the centrally coordinated provision of credits in a fast and flexible manner for companies that require a cross-border financing system for their subsidiaries in CEE. The costs of such credit facilities for CEE are in line with a comparable credit in Austria.

"With this new and innovative financing product we want to bring Austrian companies under the 'umbrella' of our Group and give them the opportunity to provide credit facilities to their subsidiaries in Central and Eastern Europe quickly and with little red tape. I am delighted that the Umbrella Facility means we can support Austrian companies even more in their endeavours in CEE", explained Helmut Bernkopf, Bank Austria Director for Corporate & Investment Banking.

The “Umbrella Facility” is a guarantee line for an Austrian parent company (the "Umbrella Line"), which it is also liable for. On behalf of the Austrian parent company and based on this guarantee, one or more credit lines can be opened for subsidiary companies in CEE ("Umbrella Loan") through the local UniCredit Bank in the given country, either in euros or in the local currency. The credits are arranged centrally for the Austrian parent company by Bank Austria, and granted based on the credit rating of the Austrian firm, which also facilitates a swift and efficient financing procedure.

 "Small and medium-sized enterprises with sales or production operations abroad often just do not have the capacities and the infrastructure to support a uniform refinancing system for their subsidiary companies. This is why we are lending a helping hand to medium-sized businesses with their activities in Central and Eastern Europe and we are convinced that this financing solution will attract great interest", said Rainer Hauser, Bank Austria Director for Private Customers, Small and Medium-Sized Enterprises.

Initially the Umbrella Facility will be offered to subsidiary companies of Austrian firms in 10 CEE countries, namely Bosnia, Bulgaria, the Czech Republic, Croatia, Hungary, Romania, Russia, Serbia, Slovakia and Slovenia. If there is sufficient demand then the plans are to extend the "Umbrella Line" to the core markets of Italy and Germany as well as to additional countries in CEE.

"With the largest banking network in Central and Eastern Europe our group stands out from all other commercial banks and is able to offer to our customers unique services: like the new Umbrella Facility. This facility means this unique selling point for Austrian firms with international operations can be fully utilised for the first time, and turned into a genuine competitive advantage", explains Gianni Franco Papa, Head of CEE Division and Deputy CEO of UniCredit Bank Austria. "We want to leverage this opportunity to become one of the top 3 cross-border banks by 2015."

Enquiries: Bank Austria Press Office Austria
 Julia Wegenstein, Tel. +43 (0) 50505 - 52854
 E-Mail: julia.wegenstein@unicreditgroup.at

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