GE Capital will support the acquisition of
Alcan Engineered Products (AEP) by providing the company with
working capital facilities, underscoring the rise in popularity of
invoice finance.
The finance provided to AEP by GE Capital
comprises a €300m accounts receivable facility in France, Germany
and Switzerland, and a $100m asset-based lending arrangement in the
US.
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The accounts receivable portion of the
facility is split with two-thirds in France and a third in Germany
and Switzerland, and has associated volumes of between $3bn and
$4bn.
Richard Laxer, president and CEO of GE Capital
in EMEA, said: “As lending volume continues to be challenged by
some traditional lenders we are seeing more and more businesses
turning to accounts receivable financing to increase working
capital and cash management facilities.”
AEP, the aluminium products manufacturer owned
by Rio Tinto and headquartered in France, is being bought by US
private equity group Apollo, which will take 51 percent, and
France’s sovereign wealth fund Fonds Stratégique d’Investissement,
taking 10 percent; Rio Tinto keeps 39 percent.
GE Capital said its ability to provide 100
percent of AEP’s required working capital facilities, and its
cross-border capability, played a big part in securing the
business.
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