M&M Financial Services to set up JV with USA firm

Mahindra & Mahindra Financial Services, the financial services arm of M&M, today said it has entered into a joint venture agreement with US-based De Lage Landen Financial Services Inc (DLLFS).

Under the agreement, DLLFS -- a wholly-owned subsidiary of Rabobank Group -- and Mahindra Finance USA LLC will set up a joint venture company to provide wholesale inventory financing services to US-based dealers for the purchase of Mahindra & Mahindra's products, Mahindra & Mahindra Financial Services informed the Bombay Stock Exchange.

The proposed firm will also provide retail finance services to end-user customers for the lease or purchase of new or used Mahindra products from dealers in the USA, it said.

While DLLFS will have a 51 per cent stake in the JV, Mahindra Finance USA LLC will hold the remaining 49 per cent participating interest.

The JV will commence operations with start-up capital of USD 5.02 million, which DLLFS and Mahindra Finance USA LLC will contribute toward in the ratio of their participating interests.

The company has received a 'No Objection Certificate' from the Reserve Bank of India for setting up the joint venture, it added.

DLLFS is a global provider of leasing, business and consumer finance solutions, including vendor finance and factoring.