PKN Orlen Selects RBS to Provide Domestic Liquidity Management Solution

PKN Orlen, one of central Europe’s largest refiners of crude oil, has selected The Royal Bank of Scotland (RBS) to fulfil its domestic liquidity management requirements in order to further improve cash and liquidity management and achieve significant financial and operational benefits.

PKN Orlen is a large international corporate, 27% state owned, approximately €22.5bn of annual revenues, with 60 subsidiaries and a retail network of 2,700 outlets across Poland, Germany, Lithuania and the Czech Republic. It undertook a review of the group’s various banking relationships, looking for opportunities to further improve cash management and liquidity for its subsidiaries.

Jacek Matyjasik, deputy treasurer, PKN Orlen, said: “Given the size and complexity of our operation, we had a very challenging set of requirements. The ability of RBS team to tailor its liquidity management solution to meet all of our precise needs was the key factor in our decision. The new liquidity management structure will help balancing available cash surpluses with short term debt within the capital group, while respecting local regulations and tax laws. Also, it will streamline the transfer of centrally arranged liquidity to our subsidiaries, securing access to funds to capital group companies.”

PKN Orlen evaluated 14 potential banking partners during a highly competitive tendering process and RBS was selected to provide a complex domestic liquidity management solution In the set-up, RBS will provide a separate cash and liquidity management structure for multiple currencies that include the euro, US dollar and the Polish zloty.

Under the terms of the agreement, RBS will manage up to one fourth of PKN Orlen’s total cash management business. RBS will enable cash pooling across the group’s subsidiaries automatically minimising overdraft charges and optimising interest payments on cash surpluses.

The flexibility of the RBS solution will allow the corporate to connect more subsidiaries than were previously catered for, thereby optimising liquidity across the group, enabling further improvements to how PKN Orlen manages cash. RBS received praise for the simplicity of its documentation, flexibility of the overall solution and the sophisticated nature of the reporting available.


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