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06.07.2016

UniCredit completes first ever Romanian BPO

  • The participants were Adiss SE and Huber SE

UniCredit has successfully completed the first BPO (Bank Payment Obligation) transaction ever carried out in Romania, for the payment of a commercial operation between Romanian firm Adiss SE, one of the leading companies in processing urban and industrial wastewater in Romania and its supplier, German company Huber SE, major manufacturer for industrial facilities to treat water, wastewater and sludge

"We are very proud to have completed the first ever BPO in Romania as it underlines once again our leadership in digitalization in transaction banking. With the BPO, we can offer our corporate customers a solution, which combines automated processing of flows with careful cost management, prompt payments and financial options for the seller. We are a frontrunner in this segment as we were also the first bank processing the BPO in Germany and Italy, and we are now getting ready for more markets," says Gianfranco Bisagni, Deputy Head of Corporate & Investment Banking (CIB) at UniCredit.

"This BPO is the first ever completed by a UniCredit bank in Central and Eastern Europe (CEE). It marks an important milestone for UniCredit as we look to spread the availability of secure and efficient trade settlement throughout the CEE region and beyond," said Enrico Minniti, Head of Central & Eastern Europe Corporate & Investment Banking (CEE CIB) at UniCredit. "The BPO's inaugural use in Romania demonstrates the increasing recognition by banks and corporates of the significant benefits provided by the BPO. Moreover, UniCredit has also become the first BPO-ready bank in Bulgaria".

This is the latest in a number of landmark BPO deals in recent years. In October 2014, UniCredit was the first bank to complete the first BPO transaction ever in Germany, between a German and Japanese company. The transaction allowed RVT Rühr-und Verfahrenstechnik to increase sales volumes by selling insured receivables to UniCredit and providing Mitsui & Co Plant Systems with more attractive payment terms.

More recently, in February 2015, UniCredit successfully completed the first BPO transaction ever carried out in Italy between SPIG S.p.A., a leading producer of industrial cooling systems, and one of its German suppliers.

Some weeks ago Global Finance magazine named UniCredit "Innovator in trade finance 2016" for its fully digitalized BPO execution platform.

Notes to editors
What is the BPO?


The BPO is an irrevocable and autonomous undertaking by a bank, generally an importer's main bank, to pay on demand or on maturity a certain amount to the exporter's bank following successful electronic checks on a series of data previously agreed by the parties.

The documentation relating to the operation (invoices, transport documents, certificates, etc.) is exchanged separately by the commercial parties, delegating to the banks the automated and direct management of the electronic data flow through the Trade Service Utility (TSU) platform developed by SWIFT (the main financial messaging communication network).

Having as its prerequisite the existence of a relationship of commercial trust between buyer and seller, the BPO lies in between documentary credit and open accounts (bank transfers), combining some advantages of both: of the former, for example, the reduction of the risk of non-payment; of the latter, the simplicity and speed of execution. The exporter company can also expand its exposure to buyers that issue BPOs and obtain easier access to financing or disposal of the underlying receivable; the importer company can instead negotiate longer payment terms, thus optimising its cash flows.

UniCredit

UniCredit is one of the largest financial institutions in Europe, with an international network spread across 50 countries, 16 of which have a commercial bank present in the country. The Group, which has assets of more than 850 billion euro, works through more than 8,600 branches and approximately 149,000 employees, serving more than 40 million customers. In Central and Eastern Europe, UniCredit is the undisputed market leader, with almost 3,500 branches and assets of approximately 146 billion euro.

UniCredit operates in the following countries: Austria, Azerbaijan, Bosnia Herzegovina, Bulgaria, Croatia, the Czech Republic, Germany, Hungary, Italy, Poland, Romania, Russia, Serbia, Slovakia, Slovenia, Turkey .

Enquiries: UniCredit Media Relations International
Tiemon Kiesenhofer
Tel.: +43 (0) 50505 56036
Email: tiemon.kiesenhofer@unicreditgroup.at