Rand Merchant Targets Corporate Finance Mart

The Johannesburg-based Rand Merchant Bank Ltd (RMB), the investment banking outfit of FirstRand Banking Group, is closely looking at business opportunities in India, specifically in the areas of infrastructure/ corporate finance, working out cross-border deals for mergers & acquisitions and advisory services.

A four-member RMB delegation led by Mac Maharaj, non-executive director, is on an exploratory visit to the country to get a flavour of the opportunities.

"There are lot of parallels between India and South Africa as far as the level of economic development, regulatory regime and efforts at privatisation of the state enterprises are concerned. As countries of the emerging world, both the countries together will be able to find synergies," Maharaj, who was till recently the transport minister of South Africa, said.

According to Michael Pfaff, chief executive officer of RMB, the investment bank is seeking to lend its expertise in structuring finance/ work out revenue model for projects, help scout for strategic investors in projects all in an advisory capacity.

The RMB group, which has a market capitalisation of $5 billion, has a limited investment capacity in taking up equity in core sector projects as the stringent exchange control regulations in South Africa do not permit investments beyond the threshold of $50 million, he said.

RMB will be holding talks with the National Highways Authority of India for participation in a consultative capacity for the mega road project in the country.

With domestic companies looking outward for expansion and seeking to become global players, RMB could help them with investments in South Africa, which abounds in minerals.