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Innovation In Action


Appointing Citi its single global banking partner improves liquidity management

The Challenge
Abu Dhabi National Energy Company (TAQA) is a leading United Arab Emirates energy company specializing in upstream oil and gas, pipelines, gas storage, power generation, and water desalination. With businesses across the Middle East, North America, Europe and India, it has revenues of USD 4.5 billion (2008).

Rapid expansion abroad had created new demands on TAQA's treasury organization. Due to its decentralized structure, funds visibility was difficult. Multiple new systems and processes needed to be built to support the company's larger multinational operations. And significant new capital was needed to reduce leverage and support growth. For these reasons, TAQA began restructuring its treasury management function.

Cash reporting relied heavily on phone communication and faxed spreadsheets. But following its stock listing and a company-wide cost-control drive, Turkish Airlines knew it had to improve payment process efficiency and increase visibility through real-time electronic reporting and reducing transaction charges. It issued a tender for its global cash management business.

The Innovation
TAQA appointed the accounting firm Price Waterhouse Coopers to help establish a "Global Treasury Center" in Amsterdam to manage funds flow in all countries and currencies.

The new Center required a single global banking service provider, and Citi's Global Transaction Services unit was awarded the mandate. Immediately, Citi provided multiple innovative best-practice and cutting-edge solutions. Among them:

  • Domestic cash management services for 30 legal entities in North America, Europe, and the Middle East
  • A global liquidity structure with a multi-currency notional pool in London
  • Daily sweep of cash balances
  • Host-to-host payment and reconciliation connectivity to TAQA's SunGard treasury workstation
  • CitiDirect® Online Banking platform

The Result
TAQA has a single global banking partner to conduct cash management and liquidity operations, which is an important element toward achieving success in its future businesses.

"By choosing Citi, we are gaining access to high-caliber expertise, a global footprint and local knowledge," says TAQA Chief Financial Officer Doug Fraser. "Citi was able to provide us with a solution that was flexible and matched the needs of our company."