RBC Dexia Investor Services (RBC Dexia) and Unione di Banche Italiane scpa (UBI Banca) have entered into an agreement for UBI Banca to transfer its depositary bank business to RBC Dexia. The value of the transaction is 93 million, based on a contract with a planned duration of ten years for the provision of depositary and fund administration services by RBC Dexia to UBI Bancas subsidiary UBI Pramerica.
The business has over 19 billion in assets under custody mainly related to the fund management activities of UBI Pramerica, the third largest fund manager in Italy. The agreement also includes certain correspondent bank agreements regarding the provision of paying agent services in Italy for Luxembourg SICAVs and Dublin UCITS, subject to client consent.
Within the framework of the agreements, RBC Dexia will also provide custody and settlement services to UBI Banca for international securities activities, for both client and proprietary transactions.
UBI Banca will accrue a net capital gain of over 80 million, with a positive impact of approximately 10 bps on UBI Bancas consolidated Core Tier 1 Ratio and Total Capital Ratio. The transaction is financed via the internal funds of RBC Dexia, without recourse to external shareholders.
The completion of the transaction is expected to occur in the first half of 2010, subject to customary regulatory approvals from the relevant authorities.
Jos Placido, CEO of RBC Dexia Investor Services, said: This agreement marks a meeting of two strong organizations with shared corporate values and a commitment to support the growth and development of their clients. Our global service capabilities make us the perfect strategic partner for UBI Banca on this transaction as the Italian fund management community continues to evolve.
Victor Massiah, CEO of the UBI Banca commented on the agreement: UBI Banca is pleased to announce this agreement with a global specialist in depositary banking whose commitment to excellence will ensure a high standard of service. The transfer of these specialist activities will allow UBI Banca to further optimise operational risk and efficiency and to continue to focus and invest in our core business.
In the transaction the UBI Group was assisted by Morgan Stanley as financial advisor and by Studio Chiomenti as legal advisor. RBC Dexia was assisted by Studio Legale NCTM as legal advisor.