UPS CAPITAL TEAMS WITH ABN AMRO, HIRES NEW MANAGERS

UPS CAPITAL TEAMS WITH ABN AMRO, HIRES NEW MANAGERS

   UPS Capital Corp., the finance division of logistics giant United Parcel Service Inc., has formed an alliance with the North American division of ABN AMRO Bank, a large global bank headquartered in the Netherlands.

   UPS Capital’s Global Trade Finance division and ABN AMRO will work together to develop back-end systems and financial services for companies involved in international trade, UPS said. The two companies will focus on the issuance and negotiation of letters of credit and subsequent bankers’ acceptance financing.

   The move marks an expansion of UPS’s strategy to match its logistics service portfolio with an equally strong financing unit, which figures to play a more important role in winning future supply chain management contracts. Deutshce Post AG plans to expand its trade financing service portfolio using two subsidiary banks in Germany. Large forwarders and logistics providers have moved toward alliances with banks to offer these services as well.

   Separately, UPS Capital named four new managers, each with extensive finance industry experience, to head up its business units. Richard Brown, Rodney W. Darensbourg, Charles G. Johnson and Jack B. Pereira will oversee UPS Capital’s Credit, Leasing Services, Distribution Finance and Payment Solutions business units, respectively.