SBI, CaixaBank ink pact to fund Indo-Spanish joint ventures

Both have signed a memorandum of agreement to enhance business synergies

State Bank of India (SBI) and Spain's CaixaBank have inked pact to provide loans to Indo-Spanish joint ventures and local enterprises here.

SBI and CaixaBank have signed a memorandum of agreement to enhance business synergies.

According to the agreement, they will expand banks' guarantee transaction businesses by jointly providing credit to Indian-Spanish joint ventures and Indian local enterprises, SBI said in a statement.

"The banks will also cooperate through introduction of business opportunities and partnering on possible infrastructure funds," it added.

The agreement was signed by CaixaBank's Executive Vice-President, International Banking, Victoria Matia and SBI's Chief General Manager Sujit Kumar Varma.

The banks will collaborate in areas of mutual interest such as syndicated loan business, guarantee transactions, trade finance and export credit agency finance, infrastructure finance and networking services, among others.

Through this agreement, both SBI and CaixaBank will gain direct access to their respective markets of operation, said the release.

Both banks' clients will be able to use the vast combined network to expand their businesses abroad.

"... This agreement with India's leading financial institution... Will help facilitate the growth of Spanish companies operating in this market," said Matia.

"India is increasingly making its global presence felt across various landscapes. Partnering with an organisation like SBI is strategically important to us, and we look forward to contributing to SBI's growth through our market expertise and established relationships."

CaixaBank had established its representative office in New Delhi in 2011.

It offers business counselling and helps Spanish companies to develop their business in the South Asian region and Indian companies with interest in Spain.