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BNL, Ifitalia and Fincantieri sign an agreement for reverse factoring to increase liquidity of Fincantieri suppliers
09 mar 2010
09 mar 2010
BNL will provide the firms involved with further credit facilities for commercial guarantees and advance payments on contracts
Rome/Trieste, 9 March 2010. BNL-Group BNP Paribas, Ifitalia and Fincantieri have signed a reverse factoring agreement which enables firms working with Fincantieri to unfreeze credit and draw on additional liquidity.
The agreement, which reflects the close attention which Fincantieri pays to its network of suppliers, makes available to companies which work with the shipbuilding group additional liquidity – through BNL - in proportion to their supply contract, to improve both their cash flow and their balance sheet indices.
The agreement will have an initial duration of 3 years and involve over 5,000 companies of all sizes, for an overall turnover of approximately 2 billion Euros every year for the purchase of materials and work.
Under the terms of the agreement, Ifitalia, a company in BNL group which specialises in factoring, takes on the credit of companies which supply products and services to Fincantieri, and advances payment; BNL, for its part, will make available to the same companies, further credit lines for the provision of commercial guarantees and advance payments on contracts, before invoices are issued.
The agreement concerns both simple provision of products and assembly services, and complex activities, such as turnkey provision of plant and furnishings. Under the agreement, companies make over to Ifitalia their commercial credit towards Fincantieri, both pro soluto and pro solvendo. Furthermore, for immediate financial requirements, connected to fulfilling the contract, companies may request an advance payment on the contract from BNL and the issuing of bank guarantees.
«BNL takes a responsible attitude to companies, supporting both ordinary financial requirements and those necessary for development plans – commented Fabio Gallia, Chief Executive Officer of BNL – This is the background to the agreement with Fincantieri, a practical response to unfreeze credit and finance the production cycle»
"Fincantieri is continuing its commitment to suppliers and recognises their importance since together we make up the company’s system – said Giuseppe Bono, Chief Executive Officer of Fincantieri –This agreement with BNL sets out to further strengthen our relationship with our supply chain by providing new instruments, also of a financial nature, which can support firms at this difficult moment for the economy.
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BNL, founded nel 1913, is one of the most important Italian banking groups with a well-known name in Italy. Today it is a member of the Group BNP Paribas, leader in Europe in banking and financial services of international importance and is rated by S&P as one of the soundest 6 banks in the world. The Group is present in 85 countries with a staff of over 205,000, of whom 165,200 in Europe. It occupies key positions in three large sectors of activity: Retail Banking, Investment Solutions and Corporate & Investment Banking.
BNL, with around 900 service outlets in Italy, offers a wide range of traditional and innovative products and services to meet the very many requirements of its customers (private individuals and families, firms and public administrations).
Fincantieri (www.fincantieri.com ) is one of the world’s largest shipbuilders. Headquartered in Trieste, the company employs – directly and indirectly - approximately 30,000 people and is world leader in the construction of cruise ships, reference operator in the large ferry sector and has a substantial order book for naval vessels in addition to a significant presence in the mega yacht sector. The company’s design centres are in Trieste, the largest in Europe, and Genoa.
Rome/Trieste, 9 March 2010. BNL-Group BNP Paribas, Ifitalia and Fincantieri have signed a reverse factoring agreement which enables firms working with Fincantieri to unfreeze credit and draw on additional liquidity.
The agreement, which reflects the close attention which Fincantieri pays to its network of suppliers, makes available to companies which work with the shipbuilding group additional liquidity – through BNL - in proportion to their supply contract, to improve both their cash flow and their balance sheet indices.
The agreement will have an initial duration of 3 years and involve over 5,000 companies of all sizes, for an overall turnover of approximately 2 billion Euros every year for the purchase of materials and work.
Under the terms of the agreement, Ifitalia, a company in BNL group which specialises in factoring, takes on the credit of companies which supply products and services to Fincantieri, and advances payment; BNL, for its part, will make available to the same companies, further credit lines for the provision of commercial guarantees and advance payments on contracts, before invoices are issued.
The agreement concerns both simple provision of products and assembly services, and complex activities, such as turnkey provision of plant and furnishings. Under the agreement, companies make over to Ifitalia their commercial credit towards Fincantieri, both pro soluto and pro solvendo. Furthermore, for immediate financial requirements, connected to fulfilling the contract, companies may request an advance payment on the contract from BNL and the issuing of bank guarantees.
«BNL takes a responsible attitude to companies, supporting both ordinary financial requirements and those necessary for development plans – commented Fabio Gallia, Chief Executive Officer of BNL – This is the background to the agreement with Fincantieri, a practical response to unfreeze credit and finance the production cycle»
"Fincantieri is continuing its commitment to suppliers and recognises their importance since together we make up the company’s system – said Giuseppe Bono, Chief Executive Officer of Fincantieri –This agreement with BNL sets out to further strengthen our relationship with our supply chain by providing new instruments, also of a financial nature, which can support firms at this difficult moment for the economy.
***
BNL, founded nel 1913, is one of the most important Italian banking groups with a well-known name in Italy. Today it is a member of the Group BNP Paribas, leader in Europe in banking and financial services of international importance and is rated by S&P as one of the soundest 6 banks in the world. The Group is present in 85 countries with a staff of over 205,000, of whom 165,200 in Europe. It occupies key positions in three large sectors of activity: Retail Banking, Investment Solutions and Corporate & Investment Banking.
BNL, with around 900 service outlets in Italy, offers a wide range of traditional and innovative products and services to meet the very many requirements of its customers (private individuals and families, firms and public administrations).
Fincantieri (www.fincantieri.com ) is one of the world’s largest shipbuilders. Headquartered in Trieste, the company employs – directly and indirectly - approximately 30,000 people and is world leader in the construction of cruise ships, reference operator in the large ferry sector and has a substantial order book for naval vessels in addition to a significant presence in the mega yacht sector. The company’s design centres are in Trieste, the largest in Europe, and Genoa.