Welcome to the Association of Corporate Treasurers’ (ACT’s) Deals of the Year Awards 2019. Appearing slightly later than usual compared to the ACT’s more usual calendar of events, this year we take the opportunity to celebrate the profession’s brightest and best alongside the ACT’s Annual Conference 2020.
As ever, it has been a privilege to discuss and review some of the best examples of treasury practice across the UK and EMEA. And while today’s extraordinary conditions will doubtless make themselves felt in next year’s awards – it will be fascinating to see how treasury teams have responded to the new work-from-home requirements – we should not let 2019’s achievements be eclipsed by today’s news cycle.
After a number of years where the one constant appeared to be volatility driven by surprise macro events, 2019 marked a turning point in a number of areas, without actually delivering the stable environment many of us would look forward to.
In the UK, the political agenda was dominated by the Brexit roadblock, resolved only at the end of the year and the election of a new government with a majority sufficient to implement its preferred path. This turning point led to the UK’s departure from the EU on 31 January.
Negotiations, of course, stumble on. The current stage – negotiating the UK’s future trading relationship with the EU, the US and other major trading partners – is arguably more important when it comes to providing business with certainty over the future operating environment. For UK businesses, therefore, uncertainty remains; the mantra of ‘hope for the best, prepare for the worst’ is probably worth bearing in mind.
Globally, in 2019 the trade war saga, particularly that between the US and China, dominated much of the narrative. The easing of trade tensions in the latter half of the year was a welcome development and will hopefully continue as the world focuses on coping with the COVID-19 pandemic and its health, social and economic consequences and, as importantly, climate change and its increasingly visible impact on us all… of which more later.
From a market perspective, in 2019 the starting point though was, of course, the abrupt 180-degree turn in interest-rate expectations in the first quarter, with the subsequent cuts in the US and the return of quantitative easing in Europe.
This underpinned a resumption (at least for 2019) of the bull market in both equities and the loan and bond markets, where investors’ hunt for yield continued. Issuance conditions for corporates were generally good to excellent through the year, with only short-lived bouts of market weakness.
As a result, many corporates executed opportunistic refinancings – improving documentary terms, maturities or costs, and sometimes all three! A number of excellent examples were considered by the judging panel.
The wide range of nominations showcasing different aspects of treasury practice prompted vigorous debate among the panel. I will touch on two areas that illustrate perhaps the most important factors that the panel looks for in the hunt for winners.
Those opportunistic refinancings were a prominent feature, with treasurers proving ready to take advantage of optimal market conditions when they presented themselves. Being able to move quickly and decisively is a key skill in treasury, requiring judgement, but also preparedness – the classic ‘execution capability’ that all treasurers have traditionally aimed for.
I would also highlight the evolution of green or sustainable finance – the ESG category. For the second year in a row, the number of nominations doubled and the variety of transactions – some of which we had not seen before – was impressive. It is fair to say the panel spent more time on this category than any other.
It is immensely heartening to see the treasury profession in the development vanguard of likely the single-most important issue for both corporates and society today – a superb example of the profession’s ‘innovation capability’, perhaps the profession’s most underestimated ability to lead change in their individual companies and across the profession more widely.
Demonstrating innovation with a purpose and highest-quality execution, I would suggest, go to the core of what marks out the best treasurers and treasury teams.
As ever, the awards would not be possible without the commitment and input from a large number of people, not least our lead sponsor – Lloyds Bank – the team at The Treasurer and the ACT, who deliver an ever-improving operation enabling the judging panel to consider nominations in a timely and efficient manner.
And finally, the judges: I would like to thank Fraser Campbell, who stepped down from the judging panel, for his many insightful and good-humoured contributions over the past few years.
I am delighted to be able to welcome Mona Lockett, general manager – automotive, group treasurer at Al-Futtaim, to the judging panel, who has made an immediate impact with a perspective based on many years’ experience of treasury in the Middle East and North Africa.
My thanks go to all members of the judging panel for their continuing commitment to the ACT’s Deals of the Year Awards. Freely giving their time and expertise to scrutinise and discuss nearly 200 nominations is an achievement in itself and an undertaking they have performed with dedication, bringing the usual vigorous debate.
So, with great pleasure, we present the winners of the ACT Deals of the Year Awards 2019.
Philip Learoyd is group treasurer at OCI and chair of the Deals of the Year Awards judging panel
Our judging panel
The experts who judged our the class of 2019
Joanna Hawkes
Director of corporate finance at Transport for London
Mona Lockett
General manager – automotive, group treasurer at Al-Futtaim
Bente Salt
Head of treasury, Rentokil Initial
Richard Sedlacek
MD, Rothschilds
Martyn Smith
Director, Metal Choirs
Mark Venner
Treasurer, operations, BAE Systems
Paul Watters
Senior director, S&P
Henryk Wuppermann
Head of corporate finance, E.ON
This article was taken from the October/November 2020 issue of The Treasurer magazine.
