From the November 2008 issue of Treasury & Risk magazine

Gold AHA Award Winner for Cash Management

With a 68% increase in revenue since 2003 in Europe, the Middle East and Africa (EMEA), Honeywell International Inc. took steps to more tightly manage its growing business. Over those five years, acquisitions had added more than 500 bank accounts and more than 100 legal entities. Cash balances for EMEA grew to over $1 billion held in 20 currencies.

So treasury embarked on a campaign to choose just one primary bank per country. In-country cash pools were used to concentrate cash balances in each country. Notional pools were used in the U.K. and the Netherlands and a cross-border pool with Deutsche Bank AG was established for the 10 Euro countries. When possible, cash from these pools was lent back to Honeywell's in-house bank in Belgium and then "hedged back to the local currency of the lender and either invested or used to finance non-U.S. capital investments and acquisitions," explains Marie-Astrid Dubois, assistant treasurer for EMEA and Asia. Today that in-house bank can lend or borrow in 18 currencies with over 100 counterparties in more than 30 countries, running a gross book of about $4 billion in activity, she says.


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