Glitnir rolls out EDB lending technology

Glitnir will leverage the system to provide its customers in the global food, sustainable energy and offshore supply markets with more efficient work processes and enhanced risk analysis tools.

The project is part of a programme called One Glitnir, which aims at building a platform of growth for the bank's internal IT systems following a period of mergers and acquisitions in the Nordic region. Glitnir aims to implement the software in Iceland and its UK subsidiary by the end of March 2008 before rolling the system out to its other global offices. Initially, EDB's lending solution replaces Glitnir's internal back office systems for administration of syndicated and bilateral loans, enabling the bank to gear up for future growth and expand into new geographical markets. The system will also support Glitnir in becoming part of larger, more complex deals within the syndicated lending space.

"In light of regulatory requirements such as Basel II, it is vital to implement effective business controls to achieve compliance. EDB's corporate lending solution will allow us to capture data in a more efficient manner. In addition, we can provide our customers with enhanced levels of accountability, traceability and user friendliness, which is in line with our overall growth plans," says Páll Kolka Ísberg, Managing Director, Shared Support Office at Glitnir.

Joergen Roed, Head of UK Sales at EDB adds: "Following the credit crunch, trust in the securitised loans market has decreased. As a result, firms are increasingly looking to syndicated lending as an alternative way to grow their portfolios and to spread the risk inherent in lending deals. To facilitate this, corporate banks must put in place systems to manage this risk and effectively support their structured finance and syndicated lending operations."

EDB supplies a standard system as well as system implementation for Glitnir's structured finance and syndicated lending activities.