building strength with the institutional bank. - westpac · discuss which of our services are ......

Building strength with the Institutional Bank.

“We set ourselves apart by striving to provide our customers with world-class insights. This means we put our focus and energy into deeply understanding a customer’s needs and providing them with meaningful solutions to unlock and promote growth.”Lyn Cobley, Chief Executive, Westpac Institutional Bank

At Westpac Institutional Bank, building deep and lasting relationships with our customers is central to everything we do and has been part of Westpac’s fabric for almost 200 years.

I believe our role as your partner is to provide you with world-class service and solutions. We are always thinking one-step ahead to deliver cutting edge innovation and tools that help government, corporates and institutions deliver for their customers as well as providing deep information that turns insight into opportunity.

Our dedicated team of sector specialists along with our industry-leading technology and superior servicing capabilities, means we anticipate your needs and work with you to develop meaningful solutions.

We understand that customer needs are constantly changing and we are committed to providing you with the evolving solutions you have come to expect from Westpac.

Deepening our capabilities in Asia, providing innovative ways to leverage and strengthen cash positions and building upon our specialist industry expertise in areas such as foreign exchange, infrastructure or natural resources, are just some of the ways we are helping you tap into new opportunities.

We are committed to partnering with you to build innovative market-leading solutions that support your continued growth. It is through collaborative partnerships that we can provide a growth environment now and into the future.

Lyn Cobley Chief Executive, Westpac Institutional Bank

Partnering in solutions

Westpac Institutional Bank

Stronger relationships

At Westpac Institutional Bank, we pride ourselves on the strength and longevity of our relationships. In fact, we believe the strength of our relationships is a key driver in enabling our customers to achieve long term success and growth.

Westpac Institutional Bank takes a consultative approach. We get into each organisation we work with to give us the understanding we need to deliver outstanding results for our customers. Having this deeper understanding ensures we are in a position to respond to the changing landscape of our customers' operations and industry.

At Westpac Institutional Bank each customer is matched with a specialist team who focus, not only on their immediate needs, but also on long term strategic goals.

Our Relationship Managers provide every customer with a dedicated resource who is focused on providing strategic connections across Westpac Institutional Bank’s global network of industry analysts, economists and product specialists.

Partnering with Westpac Institutional Bank brings the confidence of working with like-minded professionals who understand, not only how to potentially maximise opportunities, but also how to effectively manage risk. Our customers benefit from the experience, expertise and insights which have seen us succeed throughout our history.

Please speak with your local Relationship Manager to discuss which of our services are available in your region.

2 | Stronger relationships

4 | Powerful insights

“Our contribution is the analysis of policies, economies and markets using a rigorous framework complemented by our extensive experience. We use this analysis to identify the important issues and communicate them clearly to our customers. That assists them to make more informed and confident decisions.”

Bill Evans, Chief Economist, Westpac Group

Westpac Institutional Bank combines powerful market and industry insight with a deep understanding of our customers to create tailored solutions developed by product specialists. These different layers of understanding enable us to provide our customers with greater visibility of the challenges they face and a strategic advantage when it comes to identifying opportunities early.

Deeper understanding

At Westpac Institutional Bank we understand the importance and value of industry specialisation. Managing our business through industry segment approach enables our relationship managers, product specialists and industry analysts to deeply understand the industry specific dynamics of the customers that they manage, which in turn helps us develop customised solutions tailored to our customers’ specific needs.

Intelligent insights

As business cycles change, so do the specific needs of our customers. Our industry sector experience enables Westpac to manage our customer relationships today and over the long term, with banking solutions that are relevant to our customers’ specific circumstances and environment.

Innovative solutions

The thorough insights gained from industry, our customers’ operations and the broader economy, our product specialists are provided with a platform to develop tailored, market leading solutions. Using in-house cutting edge technology, we provide future focused recommendations, which means our customers are always dealing with a counterpart they can rely on.

Economics and strategy

At Westpac Institutional Bank we turn research and analysis into a competitive advantage for our customers. Our Economics and Strategy teams provide higher order advice and insight that have a genuine impact upon our customers’ businesses. The Economic Research team, headed by Westpac Group’s Chief Economist, Bill Evans, is widely regarded as the market leader. The Global Strategy team leverages these macro insights, applying them with the highest standard of rigour to the analysis of financial markets. Our capabilities bridge:

— macro economics

— foreign exchange

— interest rates

— credit

— commodities.

Westpac Institutional Bank blends unparalleled insights on the economy, industry and markets with a deep understanding of our customers to provide unique visibility of the challenges they face and a strategic advantage when it comes to early identification of opportunities.

Powerful insights


— integrate with your existing finance systems to provide end to end real time reporting

— streamline your payables process by sending a single payment file to the bank, including foreign currency.

Correspondent banking services

Westpac Institutional Bank is a leading provider of Australian and New Zealand correspondent banking services. As one of the largest AUD and NZD payment systems participants, Continuous Link Settlement (CLS) shareholder and liquidity provider, Westpac Institutional Bank is well placed to meet all of our bank customers’ clearing and settlement needs with regards to:

— trade

— remittance

— capital, and

— financial market flows.

In addition, we also provide access to high yield deposit accounts for the secure investment of surplus liquidity.

Global transactional services and client experience

Simpler, smarter and seamless cash management and transactional services are the cornerstone of a successful global corporate financial strategy.

Our experienced teams work consultatively with you to optimise the management of working capital in line with industry trends and economic environments.

Innovative cash management

Westpac Institutional Bank provides customers with visibility of their working capital at every stage of the payables and receivables cycle. Combining technology with a collaborative working relationship, we provide the resources to help maximise yield, optimise cash flow and increase liquidity within a risk managed environment – ultimately aiming to deliver positive tangible bottom line impact.

Payables and receivables technologies

Finding the most efficient ways to move money in and out of your business in order to maximise profitability and mitigate risk is essential. Westpac Institutional Bank is at the forefront of payments technologies therefore enabling the delivery of best of breed services. We have a wholly owned, in-house payables and receivables technology provider, which means we are able to offer transactional channels that can:

— automate the manual reconciliation processes associated with receiving money or paying suppliers

6 | Global transactional services

Financial markets

Fixed incomeThe volatility of today’s fixed income markets demands a highly sophisticated approach to matching the needs of borrowers and investors. Reliability, transparency, liquidity, innovation and the ability to stand behind our convictions are essential. Westpac Institutional Bank’s expertise, experience and global network allows us to offer solutions, no matter what the challenges.

With a global footprint, we offer customer coverage across four time zones, enabling us to respond efficiently to the requests of a range of clients across the globe. Our specialisation in AUD and NZD fixed income (in combination the fifth most heavily traded currency) has given us the platform to develop access to global investors, access which we put to work across an array of additional markets and currencies.

We equip ourselves with a detailed understanding of our customers’ structures and strategic goals to enable us to deliver optimal solutions.

Debt origination

We cover borrowers across the globe in public sector, financial institution and corporate segments, providing access to funding solutions in a range a markets and formats. From bridge to bond and underwritten issuances to opportunistic transactions and private placements – these are all included in the Westpac Institutional Bank solutions based approach.

Credit and Rates

We serve the needs of a diverse global customer base comprising large and small corporate borrowers from private companies to real estate funds, infrastructure funds, infrastructure companies and utilities and listed companies as well as wholesale investors including sovereign and semi-sovereign investors, banks, real money funds, leveraged investors and other financials.

Our highly coordinated global operating model provides clients with seamless access to markets and solutions in:

— interest rate swaps, currency swaps, interest rate options and fixed interest derivatives, Commonwealth Government, Semi-Government, supranational/agency, and CPI-linked cash bonds.

— corporate, bank and financial institution bonds as well as asset backed securities and credit derivatives

— bespoke solutions to our corporate customers financial markets risks, and

— we’re committed to service in all time zones in all our market products as part of our global strategy.


CurrenciesThere is only one certainty about exchange rates and that markets are dynamic and ever changing. At Westpac Institutional Bank, we provide our customers with dedicated global sales and trading coverage to assist in managing the volatility of exchange rates.

Global reach

Commerce between Australia and Asia is becoming an increasingly integral aspect of operating a business in Australia. We are focused on evolving and expanding our product offerings to meet our customers’ Asian foreign exchange requirements, as well as servicing the needs of our customers around the globe.

Customers receive dedicated support from our network of dealing centres in Sydney, Melbourne, Brisbane, Perth, Adelaide, London, New York, Shanghai, Singapore, Hong Kong, Auckland and Wellington.

In addition, Westpac’s Asian branches in Shanghai, Hong Kong, Beijing, Mumbai and representative office in Jakarta provide direct access to the world’s major currency markets.

Experienced foreign exchange risk management

At Westpac Institutional Bank, we believe the emphasis should not be on trying to outperform markets but on minimising risk. We provide:

— spot and forward capabilities in all major and most minor exchangeable currencies

— onshore licensing in China and India giving us deliverable capability

— access to non-deliverable forward markets where they exist for certain currencies with regulatory restrictions

— a range of option products, and

— tailored solutions.

Real time, efficient e-FX capability

In a constantly changing market, our customers benefit from fast, simple and effective e-FX capabilities that enable convenient price discovery, transparency and accuracy. Westpac Institutional Bank is an active liquidity provider to customers via our proprietary platforms and all major multibank portals/electronic communication networks on either a request for quote or executable streaming price basis.

We understand the market challenges faced by business and provide dedicated, global sales and trading coverage with access to the world’s major currency markets. Available 24 hours a day.

8 | Financial markets

Commodities Westpac Commodities is dedicated to helping customers manage exposures to commodity price movements and to providing innovative financing solutions to those involved in the commodity value chain.

We offer traditional financial hedging capabilities across a broad range of commodity, emissions and power markets, servicing companies along the whole spectrum from producers to end-users.

Our Structured Commodity Finance team consists of specialists dedicated to sourcing the most efficient and effective provision of project and working capital finance, including facilitation through physical transaction capabilities.

Managing commodities price risk

As the global population increases and urbanisation accelerates, the demand for commodities and energy are greater than ever. The impact on the world’s finite resources is a growing global issue, and the value of these commodities is increasingly volatile.

At Westpac Institutional Bank, our global capabilities, local expertise and breadth of experience provide us with deeper insights to deliver value to our clients.

Our ability to warehouse risk facilitates the provision of full service commodity price risk management solutions to producers, traders and consumers alike.

Structured Commodity Finance

Our experienced team of commodity finance experts service key clients such as miners, producers, refiners and processors – in particular, producers in Australia, refiners in China and commodities traders globally – delivering the following capabilities:

— pre-payment and pre-export finance

— repos – commodity purchase and sale agreements

— borrowing base lending

— reserve base lending, and

— integrated price risk management.

Our commodities capability enables us to assist our customers to understand and proactively manage risks in an increasingly resource constrained world.

Environment

Westpac has been responding to the challenges of climate change on our business for over 15 years and has been globally recognised for our capabilities in managing the emerging risks and opportunities in this field. Westpac has the experience and the expertise to assist our clients’ transition to a carbon constrained economy.

Westpac was the first bank to trade eligible credits in the NZ ETS and we’ve been trading carbon in the EU ETS since 2006. We’re proud to have been voted ‘Best Trading Company in Australasia’ for carbon every year awarded by the Environmental Finance Awards1.

We offer a range of solutions across the Australian, European and New Zealand environmental and carbon markets. These include New Zealand Units, European Union Allowances, Certified Emission Reductions, Emission Reduction Units and other Kyoto Units, all offered in a range of currencies. We are also an active participant in Australia’s Carbon Farming Initiative.

We have been globally recognised for our leadership in the evolving carbon economy1:

— traded in the EU ETS since 2006

— first trade of carbon credits in Australia, and

— first bank to trade NZ ETS credits and still the largest financial intermediary in the NZETS.

Things you should know1. Westpac is recognised as a leader in industry polls and awards. Visit www.westpac.com.au/wibawards for more information


Trade, asset & structured finance


Our leasing specialists provide innovative and value enhancing financing solutions which are easy to understand, even when addressing complex client needs. We work closely with customers to facilitate an optimum solution is customised to meet their requirements.

We believe the strength of our relationships is a key driver in enabling our customers to achieve long-term success and growth in their business. Our knowledge and insight into particular assets and sectors is enhanced by dedicated sector team coverage and the strength of our domestic and global relationships.

Structured Finance and Securitisation

Westpac’s Structured Finance team is the market leader1 in innovative financial structures and solutions. Our capabilities include:

— warehousing facilities offered through Westpac and/or Waratah Receivables Corporation (“Waratah”)

— arranging term Structured Asset Backed Bond issues in the Australian and New Zealand market, and

— bespoke financing unique to client or industry circumstances, including off balance sheet funding structures.

We provide a high level of support for the initial and ongoing success of our clients’ transactions. These include the provision of interest rate and cross currency swaps, deposits/Guaranteed Investment Contracts (GIC) facilities and liquidity/redraw facilities. We also maintain an active secondary market presence and strategically invest in Asset-Backed and Mortgage-Backed Securities (ABS & MBS).

Westpac finances a wide range of asset portfolios that meet a minimum level of credit quality, regardless of whether they are funded on the Westpac balance sheet or Waratah. This allows us to deliver a high quality and cost effective asset financing capability for our client base.

Trade and supply chain solutions

Our Trade Finance professionals support your domestic and international trade needs through our comprehensive documentary, structured trade and supply chain financing solutions.

Our solutions aim to reduce cost, optimise cash flow, manage risk and unlock working capital throughout our customers’ supply chain, for you and your trading partners.

Our Trade Finance team is at the forefront of emerging digitisation of international trade finance and has deep experience spanning all segments of the Australasian market. We provide risk mitigation solutions such as documentary letters of credit, standby letter of credits, avalised bills and cost effective financing solutions through our international trade financing suite of products.

Westpac also takes a supply chain perspective on our customers’ trade business, by providing innovative risk and financing solutions designed to add value to our customers and strategic counterparties, through our bespoke solutions, including:

— supplier financing

— inventory financing (inbound and outbound inventory)

— receivables financing (portfolios or single names), and

— borrowing base trade finance solutions.

Asset Finance & Leasing

Westpac is a leading equipment financer in Australia & New Zealand with a portfolio of assets worth over A$20 billion. Our Asset Finance and leasing specialists have extensive experience in arranging and structuring equipment financing solutions.

Our lease solution finance typically ranges in value from $10m - $300m across all customer industries and sectors. One of our key strengths is our deep in-house operating lease capability which provides customers with off balance sheet leasing, valuation expertise and asset management services.

The assets we finance can be a mix of single, discrete or bespoke large assets, or execution of large portfolios or fleets of assets.

10 | Trade, assets & structured finance

The Westpac Loan Markets team offers a comprehensive range of loan financing solutions tailored to suit the specific funding needs of our clients. We have highly experienced specialist teams delivering market-leading capabilities in the following areas:

Loans

As a consistent market leader in the Australasian syndicated loan markets1, our clients can rely on Westpac’s extensive experience with structuring and executing loan facilities as well as our proven arranging, underwriting and distribution capabilities. With one of the largest distribution networks in the region and strong international coverage, Westpac brings together a banking group which understands our clients and their ongoing funding requirements.

Supporting our syndications capability is one of the most experienced loan agency teams in Australia, allowing our clients a single point of contact for drawings, repayments and amendments of syndicated loans.

Westpac is one of the largest providers of loan finance in Australia with many of our clients relying on bilateral loans from us or via a club of banks. Westpac has a dedicated team that supports our clients through the establishment, renewal and documentation of these types of facilities.

Project Finance

Westpac is consistently ranked as a leading arranger of project finance solutions in Australasia1 having provided financing across all major sectors including infrastructure, renewable energy, power, public/private partnerships, oil & gas and natural resources. One of Westpac’s key strengths is our deep knowledge of these sectors, which when combined with our loan structuring capabilities, enables us to deliver optimal project finance solutions for our clients.

Leveraged and Acquisition Finance

Our Leveraged & Acquisition Finance (L&AF) team leads complex event driven financings such as leveraged buyouts, M&A, expansion capital and IPOs. Our L&AF team is a leading player in the Australian and New Zealand markets1 with strong links into Asia (including Singapore, Hong Kong and China). Our team has extensive experience across the full spectrum of transactions, from providing growth capital solutions to financing large scale buyouts.



Loan markets


A global perspective

Americas

With a history spanning more than 40 years’ of operating in America and a dedicated US based team, headquartered in New York, we convert our Australasian insights into a global context. Our business and our mission are defined around customer led strategy within the bank’s area of expertise and differentiation – Australia and New Zealand.

We are committed to the regions our customers do business in.

14 | A Global Perspective

Europe

Our presence in the UK dates back to 1853, with our London branch the oldest surviving foreign bank in the UK. Our customer led strategy, focusing on Australian and New Zealand banking expertise takes us across Europe. We are committed to growing these businesses, with the clear intention of being the foremost provider of Australasian financial solutions across Europe.

Asia

At Westpac Institutional Bank, we use our extensive knowledge of the Australasian environment, coupled with our Asian insight to deliver financial solutions to corporate and institutional customers. Our businesses in Asia have been operational since 1972. While Singapore is our lead regional office in Asia, our geographic footprint incorporates branches in Shanghai, Hong Kong, Beijing, Mumbai and a representative office in Jakarta.

Australia & New Zealand

Our industry specialist teams are focused on completely understanding our customers’ businesses and industries. These dedicated teams have the expertise, insight, cutting edge research and analysis to provide customers with solution based approaches that are supported by specialised product expertise.


Share in our global strength

1817 Part of the Westpac Group, Australia’s first and oldest bank established in 1817.

13.2 m Approximately 13.2 million customers.

40,000 Approximately 40,000 employees globally.

AA-rated AA- rated with a strong balance sheet and built on the foundations of Australia’s robust financial regulation.

For more information visit www.westpac.com.au/corporate-banking

Things you should know: Australia: Westpac Institutional Bank is a division of Westpac Banking Corporation ABN 33 007 457 141 AFSL 233714 (‘Westpac’). This document is being provided to you solely for your own use and in your capacity as a wholesale client of Westpac only. This document contains general commentary only and does not constitute investment advice. Certain types of transactions, including those involving futures, options and high yield securities give rise to substantial risk and are not suitable for all investors. We recommend that you seek your own independent legal or financial advice before proceeding with any investment decision. Transactions involving carbon give rise to substantial risk (including regulatory risk) and are not suitable for all investors. Statements setting out a concise description of the characteristics of carbon units, Australian carbon credit units and eligible international emissions units (respectively) are available at www.cleanenergyregulator.gov.au, as mentioned in section 162 of the Carbon Credit (Carbon Farming Initiative) Act 2011 and section 61 of the Australian National Registry of Emissions Units Act 2011. You should consider each such statement in deciding whether to acquire, or to continue to hold, any carbon unit, Australian carbon credit unit or eligible international emissions unit. This information has been prepared without taking account of your objectives, financial situation or needs. This document may contain material provided by third parties. While such material is published with the necessary permission Westpac accepts no responsibility for the accuracy or completeness of any such material. Although we have made every effort to ensure the information is free from error, Westpac does not warrant the accuracy, adequacy or completeness of the information, or otherwise endorse it in any way. Except where contrary to law, Westpac intends by this notice to exclude liability for the information. Information current as at June 2016. The information is subject to change without notice and Westpac is under no obligation to update the information or correct any inaccuracy which may become apparent at a later date. The information contained in this document does not constitute an offer, a solicitation of an offer, or an inducement to subscribe for, purchase or sell any financial instrument or to enter a legally binding contract. We respect your privacy: If you do not wish to receive marketing communications from Westpac Banking Corporation about Westpac branded products or services, please call us on 132 032; write to us at GPO Box 3433, Sydney NSW 2001; or call into any of our branches. You can view our privacy policy at www.westpac.com.au. WIB 617 (09/16)

building strength with the institutional bank. - westpac · discuss which of our services are ......

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