Maximizing the Opportunities of Ancillary Business at Group 4 Securicor
John Ambrose, Assistant Group Treasurer, Group 4 Securicor
In January 2007, Group 4 Securicor (G4S) hedged the
interest rate exposure on a $550m Private Placement
(PP). The UK corporate faced a common treasury
dilemma with this transaction - should it offer the
hedging element to the agent banks associated with
the PP or look to its wider syndicate of banks? G4S
broke with conventional wisdom and split the
derivatives and PP element of the transaction for
several reasons: firstly it provided an opportunity to
offer ancillary business to more of its lending banks
and secondly, it created healthy competition for the
derivatives business - enhancing price efficiency.
However, G4S wanted to achieve these objectives
without sacrificing convenience and service on the
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