Finacity Corporation has announced the successful closing of a securitisation transaction with ABB as the originator, and Finacity as the information reporting agent and note issuer.
The three-year agreement is expected to provide ABB cash proceeds of up to US$250mn through the ongoing purchase by one of Finacity’s entities, without recourse, of trade receivables generated by ABB’s 19 US operating entities.
Says ABB’s treasurer Barry Wentworth: “We are very pleased with the implementation of this arrangement, which is in line with ABB’s overall financing strategy. Finacity played a valuable role in the structuring of the new transaction and we are looking forward to them demonstrating their administrative capabilities in the programme going forward.”
“We are very proud to have served ABB in a complex transaction designed to maximise liquidity and minimise cost-of-funds, while removing the ongoing administrative burden to our client, ABB,” says Adrian Katz, CEO at Finacity.
ABB and its subsidiary companies operates through two major divisions – power technologies and automation technologies – and serves a broad base of utility, industrial, automation, energy, and commercial customers. The power technologies division provides the power supply industry with equipment and services for transmission, distribution, and automation.
The automation technologies unit offers equipment used to monitor and control processes in plants and utilities. ABB’s products include robotics, controls and instrumentation, switches, motors, power electronics, turbocharger systems, and various consulting services.