Dubai, United Arab Emirates: Mashreq Bank, the UAE’s leading financial institution, today announced that it will enter the non-bank financial institution (NBFI) space in India through an engagement with IL&FS Financial Services Ltd to offer external commercial borrowings (ECB) in Indian Rupees.
Through the IL&FS Group, Mashreq will serve the Indian market across various verticals including financial services, power, transport infrastructure, real estate, and education, providing new avenues for Indian companies to borrow from overseas markets.
Commenting on the move, Mr. Ahmed Abdelaal, Head - Corporate & Investment Banking Group of Mashreqbank said, “We are pleased to have come to an agreement with IL&FS Group, one of the largest institutions in India. Through this agreement, we have provided an opportunity for corporate institutions across India to borrow from the International market on terms specific to the Rupee. This allows the borrower to expand their funding sources without any exchange risk, with marginal savings in pricing and elongated tenor.”
This borrowing facility is extended through the automatic route of the Rupee External Commercial Borrowings Guidelines issued by Reserve Bank of India (RBI).
Mr. Ramesh C Bawa, Managing Director & CEO of IL&FS Financial Services said, “The collaboration between IL&FS (through IL&FS Financial Services) and Mashreq Bank will go a long way to support the capital raised for infrastructure development in India. We have been actively working with several institutions globally on innovative funding models, this ECB is a testimony of the same. Such foreign borrowings not only complement the efforts of domestic institutions to fund infrastructure projects but also help in diversification of funding sources. We look forward to further strengthening this relationship and grow the India-UAE business corridor.”
IL&FS Group was the pioneer in raising the first ever ECB in Indian Rupees, popularly referred to as Masala Loans, in November 2016.
Historically NBFIs predominantly borrowed from banks and other institutions in their domestic market. Through this agreement, Mashreq Bank has opened new avenues for external commercial borrowings funded through the UAE and disbursed in Indian Rupees.
For more information on Mashreq Banks engagement with IL&FS Group to offer external commercial borrowings in Indian Rupees, please visit: www.mashreq.com
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About Mashreq:
Established in 1967, Mashreq is the oldest privately held Bank in the UAE with award winning financial solutions and services. Throughout its 50 years' history, Mashreq has differentiated itself through innovative financial solutions, making it possible for its customers to achieve their aspirations. Today, Mashreq has a significant presence in 11 countries outside the UAE with 21 overseas branches and offices across Europe, USA, Asia and Africa.
Mashreq launched its new Vision and Mission recently, outlining its commitment towards its clients, colleagues and the community. In line with its new Vision to be the region's most progressive bank, Mashreq leverages its leadership position in the banking industry to enable innovative possibilities and solutions for its customers across Corporate, Retail, International, Treasury and Islamic Banking. Mashreq is proud to be the first financial institution in the UAE to be awarded the Gallup Great Workplace Award for four consecutive years from 2014-2017. Mashreq also continues to invest in recruiting, training and developing future generations of UAE National bankers.
About IL&FS Financial Services Limited (IFIN):
IL&FS Financial Services Limited (IFIN), a wholly owned subsidiary of IL&FS, is the investment-banking arm of the IL&FS Group with a strong client base and provides end-to-end financial solutions including project finance advisory & syndication, financial structuring and equity placements. IFIN is active in mobilizing project and corporate debt and equity for India centric initiatives, including for the IL&FS Group. IFIN has a presence in domestic financial markets with strong relationships with Financial Institutions, Banks, Insurance & Pension Funds and other investors. IFIN enjoys the highest ratings from rating agencies.
Dovetailing increased international linkages with India centric businesses, over the past few years, IFIN has created a strong presence through its offices in Hong Kong, Singapore, London and Dubai - which deliver financing solutions and advisory services to various infrastructure initiatives of the IL&FS Group and its client constituents. The international offices specialize in infrastructure financing, having continuously innovated structured facilities for infrastructure funding.
© Press Release 2018
