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ING Bank Philippines and Bank Mendes Gans will centralize and manage International Container Terminal Services Inc and its subsidiaries’ global cash holdings into a cash pool
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This multi-entity, multi-currency notional cash pool will allow the global port developer and container terminal operator to consolidate its cash held by various banks in different countries and currencies into a single platform
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ING Philippines and BMG say this is their first transaction of its kind since the Dutch parent opened its business in the country 32 years ago
ING Bank Philippines and Bank Mendes Gans (BMG) will centralize and manage International Container Terminal Services, Inc. and its subsidiaries’ global cash holdings into a cash pool.
The two units of Dutch bank ING in a press release said the ICTSI mandate is the first of its kind transaction that they have undertaken in ING’s 32 years in the Philippines.
This multi-entity, multi-currency notional cash pool was designed to allow ICTSI, an international developer and operator of container terminals, to consolidate its cash held by multiple banks in different countries and currencies into a single platform, centralizing ICTSI and its subsidiaries’ cash globally.
The centralization of cash of ICTSI and its subsidiaries’ cash globally helps the client to use its own funds to the largest extent, thus minimizing external borrowings and relevant costs.
The unique features of BMG’s cash pool also helps ICTSI to avoid intercompany loans by allowing each subsidiary to open accounts with BMG in its own legal name.
BMG, a 100% subsidiary of Amsterdam-headquartered ING, provided expert counsel and advice to ICTSI through several discussions with its legal, tax, compliance and offshore subsidiaries.
“This solution implemented with ING and BMG further widens ICTSI’s liquidity management tools aimed at simultaneously supporting our capital expenditure and deleveraging programs,” said Rafael Consing, senior vice-president and chief financial officer of ICTSI.
Jun Palanca, head of wholesale banking at ING Bank Philippines, thanked ICTSI for its trust in the two ING units.
“As a banking partner to ICTSI, we are pleased to be able to help them find an efficient way to manage their funds,” Palanca said.
“Moving forward, we envision that this cash pool solution by ING and BMG could be extended to more Philippine corporates with wide international footprint.”
ING’s announcement of this pioneering transaction follows their recent celebration of its 32 years in the Philippines at the Manila Polo Club on October 27.
The financial institution recapped more than three decades of achievements and steps towards climate action and sustainable business in banking, as well as plans for the future.
Bank Mendes Gans, founded in 1883 and based in the center of Amsterdam, is an independently operated subsidiary of ING Group. BMG specializes in international cash management services.
ING has been in the Philippines since 1990, serving corporate and institutional clients. It set up its retail banking operations in the country in 2018 to lay the groundwork for a wider expansion across Asia.
However, it has decided to wind up its retail banking business by the end of this year to focus on expanding its wholesale banking operation and on sustainable finance, FintechFutures reported on July 25, 2022.
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