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China’s ICBC to become Tata’s banking partner

Bank will also offer international trade finance business, investment banking services to the firm.

Looking to fund its growth across the world, Tata Sons, the holding company of the India’s largest conglomerate, Tata Group, announced a strategic partnership with China’s Industrial & Commercial Bank of China (ICBC), the world’s largest bank by assets.

Under the alliance, ICBC will provide financing products, global cash management and consulting to the Tata Group. It will offer international trade finance business, investment banking, foreign exchange, derivatives trading, and other global financial services.

“Tata Sons and Industrial & Commercial Bank of China Limited (ICBC) have formed a long-term partnership, under which ICBC will become a strategic banking partner to the Tata group,” the Tata Sons and ICBC said in a joint statement..

“ICBC will also create a global service team which will support Tata group’s strategic development plans. The alliance will be a global one with the geographies covered including India, China, Singapore, Europe, the USA, and South America. The Tata group will consider proposals from ICBC and solicit its participation on bilateral transactions and tender offers,” the joint statement added.

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An official with the company told that the move is in line with the worldwide growth plans of Tata Group and the alliance would help it not just to fund the growth but also in various other aspects.

While several Indian companies, especially those operating in the power sector, have been tying up with Chinese banks for their borrowing needs at a low cost. However in several cases most of the borrowed money from Chinese banks have been used to purchase equipment from Chinese companies itself.

A team of Tata executives, led by chairman Cyrus P Mistry, met with Jiang Jianqing, Chairman from ICBC and his team to formalise the engagement. The Tata group has over 100 independent companies operating in more than 100 countries across six continents. In 2014-15, the combined revenue of Tata companies was over $ 108 billion.

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ICBC is one of China’s ‘Big Four’ state-owned commercial banks (the other three being the Bank of China, Agricultural Bank of China, and China Construction Bank). It’s the largest bank in the world across all four metrics: $166 billion in sales, $44 billion in profit, $3.32 trillion in asset and $278 billion in market value.

As of the end of June 2015, ICBC had a network covering 40 countries and regions overseas, with 17,225 domestic institutions, 389 overseas institutions and 1,661 correspondent banks worldwide. ICBC has a presence in India, with a branch in Mumbai, since September 2011 and presently offers

wholesale banking services, including corporate banking, investment banking and trade finance.

Tata Steel arm inks $1.5 billion pacts to refinance debt

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New Delhi: Tata Steel Global Holdings, the Singapore arm of Tata Steel has executed pacts worth $ 1.5 billion for refinancing its debt.

“TS Global Holdings Pte Ltd (TSGH), a subsidiary of Tata Steel Ltd incorporated in Singapore, has executed agreements on Wednesday for loan facilities of $ 1.5 billion comprising a five -year loan of $750 million and a six year loan of $750 million”, the company said. It added that the proceeds will be used to repay existing term loan facilities in TSGH.

The loan facility has been contracted with a group of 16 mandated lead arrangers including Australia and New Zealand Banking Group, Axis Bank, Bank of America, HDFC Bank and ICICI Bank, among others. ENS

First published on: 03-12-2015 at 12:47:09 am
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