BNP Paribas Personal Finance partners with Arval to offer one stop shop to purchase and finance used stock.

Two divisions of the BNP Paribas Group in the UK – BNP Paribas Personal Finance and car leasing specialist, Arval – are joining forces to launch a new stock financing solution for motor dealers across the UK.

Dealerships can now purchase and finance their used stock in one transaction directly through Arval’s market-leading online sales platform MotorTrade.  The tie up enables dealers to spread 100 per cent of the purchasing cost (inclusive of fees) over flexible phased repayments of up to 120 days.  The one-stop solution also makes it easier for dealerships to increase their stock levels, to manage their cashflow, and plan their expenditure levels.  The solution is backed by the BNP Paribas Group for complete peace of mind.

Funding is applied to the account automatically for vehicles bought through the stock funding option.  All information relating to the purchase, such as invoices, statements and payment schedules, is available to view on any connected device through an online account.

Arval’s MotorTrade platform offers dealerships direct online access to around 45,000 ex-lease vehicles each year from a range of manufacturers with no middlemen and competitive buyers’ fees.

For its part, BNP Paribas Personal Finance has been offering responsible consumer finance solutions in the UK for 45 years.  In that time, it has become a trusted partner for businesses adapting to ever-changing marketplaces.

The new agreement is part of BNP Paribas’ Group-level commitment to deliver a seamless ‘one bank’ approach that pools the expertise of all its teams to provide the best experience for its partners.

Andrew Brameld, managing director of BNP Paribas Personal Finance’s motor finance business in the UK, said: “We’re delighted to be partnering with Arval to deliver this industry-leading stock finance solution to motor dealers across the UK.

“Here at BNP Paribas Personal Finance we have extensive experience at delivering quality, affordable financing options and we’re sure dealers will find this to be a useful tool as they manage and finance their stock levels.”

Gary Burns, remarketing director at Arval UK, added: “Arval MotorTrade has grown rapidly to become the go-to platform for retailers who are looking to purchase high quality used stock for their forecourts.

“This partnership further enhances our MotorTrade proposition making it even easier for buyers to access the stock they need, while giving them the confidence they have a finance plan in place that they know they can trust.”

For more information on BNP Paribas Personal Finance click here.

For more information on Arval UK click here.

For more information on Arval MotorTrade click here.

For more information on the BNP Paribas Group in the UK click here.

  • New report identifies the UK’s most important long-term growth industries
  • Scientific, admin, professional and support services sector is set to more than double in size over the next 20 years
  • Transport and Communications sector to create 120 new jobs a day until 2038, with tech and environmental changes a major driver
  • Health and social care also set to grow to meet the demands of an ageing population

The UK’s ten most important post-Brexit industries have been identified in an analysis commissioned by BNP Paribas, with science, technology and healthcare playing vital roles in driving future economic growth.

The BNP Paribas Market Leaders report analyses the fastest growing sectors in the UK economy over the next two decades and the underlying drivers of growth.  It is forecast using two metrics: Gross Value Added (GVA) and employment levels.  The 16 sectors analysed are those defined by the Office of National Statistics (ONS) for use in national economic indicators.

Against the backdrop of a post-Brexit environment, the report – carried out by Cebr – forecasts strong economic performance in science and technology.  The scientific, admin, professional and support services sector is set to more than double in size (by 103%) over the next 20 years and see 25% employment growth over the same period, meaning it will be the biggest sector in the UK economy by 2038, worth £560bn.

The second fastest economic growth over the next two decades will come in the transport, storage and communications sector, which is home to the IT and computer programming industries.  The sector overall expects to see 92% growth in the coming 20 years, and will be worth £451bn by 2038 – making it the second largest in the UK economy.  The analysis suggests that the sector will see a 37% increase in employment and add 900,000 jobs in the next 20 years – or 120 every day.

The report identifies that the IT and computer programming sub-sector is likely to see a notable rise in its value (increasing by 8% year on year to 2024, then by 6% in the longer term).  Seven in ten (71%) executives in the computer programming and consulting industries say tackling increased cyber security fears – from both businesses and consumers – will drive significant growth in the industry, through increasing demand for sophisticated antivirus software and specialist consulting services.

The third ranked sector is health and social work, which will see a 78% increase in the value of output over the next 20 years, as the UK meets the demands of an ageing population with increasingly complex needs.  The sector is forecast to grow to a value of £258bn in 2038, which will make it the fifth largest sector in the UK.  However, it is set to only see a 29% increase in employment.  Driving this growth is the higher number of people who will require more time from doctors and nurses, as well as increased care home availability.  This will require both greater NHS spending as well as private expenditure on many non-state funded health products.

The automotive manufacturing sector is also expected to stage a recovery post-Brexit.  Following a challenging period where growth rates fell to -1.4% in 2018, economists predict that the industry will begin to prosper again over the next two years, achieving growth of 3% by 2021.  68% of survey respondents in the automotive sector responded that the demand for green vehicles would affect future growth positively.

Over the long term, the findings identify the impact of bigger societal and technological trends. Driving much of the growth is a commitment to sustainability and tackling environmental concerns.  Indeed, the UK Government’s commitment to legislate for net zero emissions by 2050 will drive demand for innovation and creation of new products from the growing number of businesses and consumers seeking to become carbon neutral.  Additionally, a net zero economy requires low carbon infrastructure and construction – for example, an increase in the use of electric vehicles requires further development of a smart grid and widespread construction of charging terminals.  60% of construction professionals indicated that green construction would be a positive indicator of growth.

It’s also unsurprising to see a big uplift in the IT sector.  While growth in employment rates in this sector is offset somewhat by labour efficiencies coming from automation, we will continue to see specialist technology sectors booming over the next 20 years.

Drivers of Growth

The BNP Paribas Market Leaders Report also investigates the key drivers of growth in the UK economy and the regions set to benefit most from this economic prosperity.

  • Inner London ranks #1 when it comes to value in the Transport, Storage & Communications sector.
  • North Yorkshire is one of the top five areas for share of GVA coming from the Accommodation & Food Services sector (5.1%).  This sector is set to see a 41% increase in value over the next 20 years.
  • North Wales will enjoy employment growth thanks to a number of high-growth fintech start-ups locating in the area.
  • North Eastern Scotland, including the cities of Aberdeen and Dundee, sees 15% of its GVA value come from the high growth scientific and support services sector.
  • Manchester is identified as a new powerhouse in the health and social work sector with a market value of £6bn, equivalent to 9% of the city’s economy.
  • Cornwall and Isles of Scilly will see significant growth from the real estate sector (currently 17% of its economy) with the GVA of the sector set to grow by 44% over the next two decades.

Additionally, the report identifies an elite cohort of ‘Market Leaders’, Britain’s highest growth businesses, contrasted with lower growth ‘followers’.  The characteristics of these businesses include:

  • Employee satisfaction: market leaders are more likely to deploy productivity improving measures to ensure progression, including regular promotion opportunities (33%), flexible working (37%) and offering training courses (52%).
  • These companies also exhibit a stronger risk appetite, with a third (32%) embracing risk versus a much lower number (8%) of ‘followers’.

 Anne Marie Verstraeten, UK Country Head, BNP Paribas Group, said:

“Over the next 20 years, the environment and technology will increasingly be the catalysts of change for all sectors of the UK economy.  Such change inevitably breeds challenge, but it also triggers real opportunities for UK PLC to put its leadership position and creativity in these two areas to work, and, in so doing, create sustainable growth and new jobs.”

 Download the report here.

 

 

Loan structure incentivises employment support and work-ready training for Optivo residents

UK Housing Association Optivo today announced it has secured a new five-year £50 million revolving credit facility provided by BNP Paribas. The facility is structured as a sustainability-linked loan (SLL) where the interest rate is tied to Optivo meeting social impact-based key performance indicators. There is an option to increase the size of the facility to £75 million, as well as extend the tenor.

Optivo will draw on the loan for general corporate purposes and will reinvest interest rate savings to help deliver employment support and work-ready training programmes to residents in Optivo households and communities.

Participants will benefit from a three-stage development approach based on an ‘end to end’ employment support pathway:

  1. Engagement, confidence building, information advice and guidance
  2. Pre-employment ‘work ready’ training
  3. ‘In work’ support training.

Employment opportunities include security, construction, beauty and hospitality sector jobs.

Under the terms of the agreement, Optivo will benefit from a lower interest rate margin on the loan if it delivers an agreed number of unemployed residents into work or supports them with work-ready training. This target rises incrementally over the five year life of the loan. Optivo will publish the outcome in the Group’s Annual Report.

Sarah Smith, Chief Financial Officer at Optivo, said: “Our full commitment is to building homes, making places and enhancing lives.  We’re delighted BNP Paribas are joining forces with us to maximise our positive social impact.”

Simon Gates, UK Head of Corporate Coverage and Transaction Banking at BNP Paribas, said: “Ultimately, thanks to Optivo’s focus on employment, this sustainable linked loan is about getting people back into work, which is good for individuals, families, the economy and society.  It’s a business model that BNP Paribas supports, with this deal being the second SLL we’ve structured in the UK Housing Association sector in the last 12 months.”

London, UK – 12 December 2018 – BNP Paribas today announced that it has been awarded BP’s cash management business across Europe, following a competitive tender.

BNP Paribas will support BP’s local transaction requirements in 20 countries, including all payables and receivables totalling some 100 million transactions per annum.

BP’s decision to rationalise cash management arrangements is directly linked to its Cash and Banking Transformation Programme. This project supports BP strategy around modernising the group – in this case by standardising and simplifying cash management and transactional banking globally.

BNP Paribas will work closely in partnership with the energy company to help it improve efficiency and effectiveness of its banking architecture. Currently BP operates hundreds of bank accounts across the region and BNP Paribas will be driving to streamline these and improve visibility and control of cash for its client through a zero balancing physical pooling structure.

Improved liquidity management is a key goal of the banking project; as well as euro and Swiss franc, the currencies of the Nordics, Hungary, Poland, Ukraine and Turkey are in scope. BNP Paribas will be sole Treasury banker across all of these countries.

Commenting on the win, Pierre Fersztand, global head of Cash Management at BNP Paribas, said: “I’m delighted that BP has chosen BNP Paribas as its European provider. This deal builds on the strong relationship we already hold with our client.

“We are continuing to invest significantly in our cash management offering and our innovative products combine with a broad country footprint to create a European market-leading proposition.”

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About BNP Paribas

BNP Paribas (www.bnpparibas.com) is a leading bank in Europe with an international reach. It has a presence in 73 countries, with more than 196,000 employees, including around 149,000 in Europe. The Group has key positions in its three main activities: Domestic Markets, International Financial Services (whose retail-banking networks and financial services are covered by Retail Banking & Services) and Corporate & Institutional Banking, which serves two client franchises: corporate clients and institutional investors.

BNP Paribas employs more than 9,000 people across 10 business lines in the UK. These are Corporate & Institutional Banking, Exane BNP Paribas, Leasing Solutions, Arval, Real Estate (including Strutt & Parker acquired in September 2017), Asset Management, Cardif Pinnacle, Commercial Finance, Personal Finance and Vauxhall Finance. Around half of these employees are in Corporate & Institutional Banking based in London, while the others are based in various offices across the country, including Belfast, Birmingham, Cardiff, Glasgow and Manchester.

London, UK – 26 March 2018 – BNP Paribas today announced that it has recently appointed Bertrand Valet Head of Financial Sponsors Coverage for Continental Europe. Mr Valet is based in Paris but will spend a significant amount of his time working in London. He reports to James Seagrave, the Bank’s London-based, Global Head of Financial Sponsors Coverage.

Mr Valet has more than 25 years’ experience. He joined BNP Paribas from Bank of America Merrill Lynch after nine years with that firm, latterly as a managing director and head of France coverage in its EMEA financial sponsors team. In that role, Mr Valet managed relationships with private equity clients on a pan-European basis, including priority clients in London and Paris. He also led the dialogue with key private equity firms in the context of their investments in French leveraged buyouts. Mr Valet’s recent mandates include advising on the sale of French fashion group SMCP to Shandong Ruyi on behalf of KKR in 2016, and subsequently leading SMCP’s IPO on Euronext Paris in 2017. He also advised on the sale of Germany-headquartered, industrial packaging firm MAUSER to Stone Canyon on behalf of Clayton, Dubilier and Rice last year.

Prior to this, Mr Valet led the development of Bank of America Merrill Lynch’s financial sponsors and sovereign wealth fund activity in the Middle East and North Africa until 2011. Before Bank of America Merrill Lynch, Mr Valet spent almost a decade working for Morgan Stanley in London and Dubai, and also worked for Paribas in London for two years. He started his career at Paribas Technology in San Francisco which later became Partech Ventures.

“We are delighted that Bertrand has joined BNP Paribas. He brings a strong track record in the EMEA region and excellent experience of building and developing client relationships. His recruitment is part of our ongoing strategy to increase BNP Paribas’ impact and market share with financial sponsor clients” said Mr Seagrave.

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 About BNP Paribas

BNP Paribas (www.bnpparibas.com) is a leading bank in Europe with an international reach. It has a presence in 74 countries, with more than 192,000 employees, including more than 146,000 in Europe. The Group has key positions in its three main activities: Domestic Markets and International Financial Services (whose retail-banking networks and financial services are covered by Retail Banking & Services) and Corporate & Institutional Banking, which serves two client franchises: corporate clients and institutional investors. The Group helps all its clients (individuals, community associations, entrepreneurs, SMEs, corporates and institutional clients) to realise their projects through solutions spanning financing, investment, savings and protection insurance. In Europe, the Group has four domestic markets (Belgium, France, Italy and Luxembourg) and BNP Paribas Personal Finance is the European leader in consumer lending. BNP Paribas is rolling out its integrated retail-banking model in Mediterranean countries, in Turkey, in Eastern Europe and a large network in the western part of the United States. In its Corporate & Institutional Banking and International Financial Services activities, BNP Paribas also enjoys top positions in Europe, a strong presence in the Americas as well as a solid and fast-growing business in Asia-Pacific.

About BNP Paribas Corporate and Institutional Banking

Fully integrated in the BNP Paribas Group, BNP Paribas Corporate and Institutional Banking (CIB) (www.cib.bnpparibas.com) is a leading provider of solutions to two client franchises: corporates and institutionals, and operates across EMEA (Europe Middle East Africa), APAC (Asia Pacific) and the Americas. The bank is a global leader in Debt Capital Markets and Derivatives. It is a top European house in Equity Capital Markets and it has leading franchises in Specialized Financing. In Securities Services, it is a top five House worldwide. BNP Paribas CIB strives to service the global economy by providing solutions to its clients in financing (ECM, DCM, specialized financing), flow banking (trade finance and cash management), financial advisory (M&A, project finance), global markets (interest rates, credit, foreign exchange, equity derivatives), risk management, and securities services.