UniCredit has completed the first bank payment obligation (BPO) transaction in Romania, between wastewater processor Adiss and its supplier, German water treatment facility manufacturer Huber.
This is the first BPO closed by UniCredit in Central and Eastern Europe (CEE), and did not involve any other bank, as both companies are UniCredit clients. Additionally, the bank has become the first BPO-ready financial institution in Bulgaria, marking its digital expansion in the region.
“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 and investment banking (CIB) at UniCredit.
Enrico Minniti, head of CEE CIB, adds: “The BPO’s inaugural use in Romania demonstrates the increasing recognition by banks and corporates of the significant benefits provided by the BPO.”
UniCredit has been at the forefront of BPO usage growth in recent years. In October 2014, it was the first bank to complete a BPO transaction in Germany, between a German and Japanese company. In February 2015, it completed the first BPO transaction in Italy a producer of industrial cooling systems and one of its German suppliers.