UniCredit Romania is working with several corporate clients to launch some initial public offerings on the stock exchange, stated Melih Mengu, who has been recently confirmed by the NBR for the position of vice-president in charge of the corporate unit of HVB-Tiriac Bank. Mengu, 40, had been appointed as early as last autumn as a member of the managing board of the future UniCredit Tiriac Bank that is to be set up this summer.
"Romanian entrepreneurs had started to be tempted by the idea of floatation on foreign stock exchanges, but their thinking is slowly changing and they are considering the BSE given that there's enough capital, both at a domestic level and from foreign investors, which are boosting their presence," says Mengu.
Other banks, such as BCR or Raiffeisen, state they are preparing similar projects, including syndicated loans for firms, but no such project has materialised, yet.
In Mengu's opinion, lending is no longer a product in itself. "Our target is winning customers, and not a deal or another, and the most important element in such a strategy is consulting. Once we are able to provide high-quality consulting services, we stand to gain from all products," states Mengu.
He says the corporate market has matured in recent years, with customers becoming more selective and cost aware. Mengu believes, however, that Romanian firms are not sufficiently aware of the risks entailed by a type of financing or another, particularly when it comes to foreign currency.
Mengu states the corporate market is highly competitive now and there is no room for further interest rate decreases.
The new head of the corporate unit of HVB Tiriac Bank says UniCredit does not choose its customers depending on the economic sector they operate in. The group's expansion plans include the setting up of a car fleet management company. "The simple car leasing product is no longer sufficient, more complex services are necessary," says Mengu.
Mengu does not fear competition coming from European banks that can provide services directly from abroad after Romania's EU integration, considering such players cannot have extensive activities without being present domestically. He believes many sectors of the economy, including tourism, can successfully compete on the European market if quality improves.
Until October 2006, Melih Mengu filled the position of chairman with UniCredit Leasing (the former Demir Romlease), the specialised firm of UniCredit Romania. He says the he did not see much of a difference when he moved from leasing to corporate banking. After having worked to turn around the current UniCredit Leasing firm between 1998-2001, Mengu has now been appointed as the vice-president of HVB Tiriac Bank and in summer is to join the management team of the fourth largest bank on the market, UniCredit Tiriac Bank.
Melih Mengu
Recently confirmed by the NBR in the position of vice-president in charge with the corporate unit of HVB-Tiriac Bank
Last autumn was appointed as a member of the managing board of the future UniCredit Tiriac Bank, to be set up in summer
Until October 2006 filled the position of chairman with UniCredit Leasing, the former Demir Romlease, the specialised firm of UniCredit Romania
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