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Industry roundup: 8 March

Hazeltree and Goldman partner on streamlined treasury and global payments

Hazeltree, a provider of integrated treasury management and portfolio finance solutions for investment managers, and Goldman Sachs Transaction Banking (TxB), have announced a joint solution to streamline treasury management with integrated global payments and foreign exchange (FX) capabilities. This solution aims to simplify operations and reduce costs for treasurers managing cash and FX transactions. 

The partnership combines Hazeltree’s treasury management and payment workflow solutions, built specifically for investment managers, with Goldman Sachs’ tech-forward global payment and FX capabilities.

The two firms say the benefits of this partnership and joint solution include:

  • A multi-bank treasury and cash management portal to aggregate cash balances across all banking relationships and manage movements and payments globally.
  • A streamlined process for moving cash domestically and internationally at lower cost with competitive foreign exchange rates.
  • Real-time payment tracking to reduce payment-related operational breaks.
  • Cash forecasting and optimisation.
  • Cash sweeps with bundled integration to money market providers.
  • Integrated currency exposure management, hedging and execution.
  • Cost transparency on bank fees.
  • Optimised payment routing via Goldman Sachs’ machine learning techniques.
  • Enhanced risk management as a result of improved visibility and control over FX payments and currency exposures for stakeholders.

 

Mastercard completes acquisition of Nets’ account-to-account payment business

Mastercard has completed its acquisition of the majority of the Corporate Services business of Nets, a European paytech company, having met the conditions set out by the European Commission in its approval in August 2020. The additions to Mastercard will support a broader set of account-to-account capabilities, including clearing and settlement instant payment infrastructure, bill payment and e-invoicing applications.

“This acquisition brings top talent and innovative technology, enhancing our existing multi-rail propositions to enable greater access, choice and flexibility in how people want to pay and get paid,” said Paul Stoddart, president of New Payment Platforms at Mastercard.

Over the past few years, Mastercard has continued to expand its reach beyond card payments, executing on its multi-rail strategy. The proven real-time and pioneering bill payment solutions of Nets’ Corporate Services complement Mastercard’s growing suite of payment capabilities.

 

Italy issues world's largest sovereign green bond

With its inaugural €8.5bn 24-year green Buoni del Tesoro Poliennali (BTP) - or long-term treasury bond - Italy issued the world's largest sovereign green bond on 3 March. BNP Paribas was joint bookrunner on the green bond issue.

"Italy enters the market of sovereign bonds that finance sustainable development through the issuance of the new 'BTP Green', widening the country's commitment to the European Commission's framework for achieving climate neutrality by 2050 and the goals set out in the European Green Deal," the Italian Ministry of Finance said. "The first Italian Sovereign Green Bond will finance Italy's Green Transition strategy already started in the past years."

This is of particular significance as Italy is the co-chair of this year's 26th UN Climate Change Conference of the Parties (COP26) in November. Co-hosted by the UK, COP26 will be held in Glasgow, where governments, industry leaders, scientists, and non-governmental organisations (NGOs) will meet to discuss how to accelerate climate action will be on top of everyone's agenda.

"As we look ahead to COP26, it is clear from the record demand on this deal that investors are mobilising support towards sovereigns that bring their climate ambitions to the capital markets," said Vittorio Ogliengo, executive chairman of BNP Paribas CIB Italy. 

The green BTP was over nine times oversubscribed. In addition, this landmark green bond highlights Italy's role in putting climate change on top of the agenda of the G20, for which Italy has assumed the 2021 Presidency since December 2020. 

"With this debut green bond, Italy also shows on a practical basis how a sovereign issuer can use sustainable financing solutions as an effective tool to drive the sustainability agenda ahead of multilateral meetings like the G20 and COP26," noted Delphine Queniart, global head of Sustainable Finance & Solutions, Global Markets at BNP Paribas.

 

PNC Bank joins CHIPS US dollar clearing system

PNC Bank has joined the CHIPS network from The Clearing House to clear and settle high-value and cross-border payments. The bank will now send payments via CHIPS, taking advantage of its settlement algorithm that helps clear a high percentage of volume earlier in the day. This not only reduces operational risk for PNC and for the payment system, it also enhances the customer experience by allowing PNC’s clients to receive payments and access funds sooner. 

“PNC is pleased to join CHIPS, providing our customers access to the preeminent high-value international and domestic wire transfer system,” said Chris Ward, executive vice president and head of product and operations at PNC Treasury Management. “PNC’s Treasury Management platform continues to bring dynamic payment solutions to meet our clients’ needs in this increasingly digital economy.”

CHIPS patented liquidity savings algorithm also matches and nets payments, to increase efficiency in the settlement process. 

Financial institutions in the US and around the world rely on CHIPS to clear and settle dollar payments reliably and with settlement finality. CHIPS settles an average of US$1.7 trillion in payments per day on a comparatively small funding base. The liquidity efficiency of CHIPS is presently 27:1, meaning that $1 in funding contributed to the network supports almost $27 in settled value, with most payments settling in seconds.

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