FIMBank plc has announced a joint venture with Punjab National Bank, India’s second largest bank, Italian Bank Banca IFIS and Blend Financial Services Ltd. The joint venture agreement was signed between the partners on the 4th November 2009.
As a result of this agreement, FIMBank plc, which will have a 49 per cent controlling interest in this venture, together with its partners, will be in a position to carry out factoring, forfaiting and other trade finance and related activities in India, through a Mumbai based company called India Factoring.
PNB is one of the leading public sector banks in India and is engaged in the business of providing banking and other allied services. IFIS, on the other hand, has been involved in the factoring business since 1983 and is authorised to carry out banking activities in Italy by the Bank of Italy. It specialises in domestic and international factoring activities. Blend is an integrated global financial services company offering debt syndication services, cross border mergers and acquisitions and advisory services etc
Commenting about the joint venture, which has made the news in India’s principal financial and mainstream media, FIMBank President Margrith Lütschg Emmenegger stated that this venture is exciting on various counts: “We are returning to India following a successful experience we had with GTF India, which we sold at a considerable profit in March 2008. We are now back in India for the long haul and we are very optimistic that this new venture will be even more successful. India is not only one of the world’s most important emerging markets, but it has also been demonstrating great economic resilience in the face of a challenging global economic scenario. The potential in terms of the provision of factoring and other trade finance services is exceptional. We are very proud that we have top class partners in this project all of which will contribute productively to the success of this company.”
Ms Lütschg Emmenegger also referred to the fact that this joint venture represents the implementation of yet another project which was promised to shareholders and bondholders within the context of its strategic plan.
Further information about FIMBank plc can be found at www.fimbank.com