Leveraging Banking Relationships for Cash Management Optimisation

by Joep Pessers, Treasury Manager, Fabory Group

Until 2004-5, treasury at Fabory was decentralised, with each local finance function managing its own bank relationships and credit facilities; however, we recognised that this arrangement was causing a variety of issues:

i) It was difficult to establish a global view of counterparty risk;

ii) The cost of borrowing was high without the ability to leverage the higher credit rating of the holding company;

iii) Bank relationships were fragmented, with a lack of economy of scale and disparate contractual arrangements, cost structures and technology;

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