Bnl Funds Mukand, Fata Venture Debt

Banca Nazionale Del Lavoro (BNL), one of Italy's leading commercial banks, has provided the entire debt requirement of $38 million (about Rs 150 crore) to a turnkey aluminium projected being executed by Mukand and the Fata group of Italy.

The bank is also in talks with car maker Fiat to part-fund its $ 1 billion 'Palio' car project in India.

BNL's chief representative in India, Laxmi Sagar Agarwal said the loan for the aluminum project will have a ten-year tenure and is being extended at a special rate of less than 8 per cent interest. This is BNL's single biggest exposure for any project in the country.

Agarwal indicated that the bank may sell the loan before the expiry of its tenure. "We have not sold any of our loans in the country so far. But there is a possibility of doing so," he said. On being part of the consortium of banks to Fiat---for a one billion dollar "Palio" car project in India---he said: "It is too early to comment on that. Fiat has banked with us in Italy and also in Brazil for a similar project to the one being planned in India." BNL's general manager international, Dott Ademaro Lanzara pointed out: "For projects in India where Italian companies are involved, we will extend our full support."

He said BNL is currently involved in consolidating its business, in view of the turmoil in the South East Asian countries, and would chalk out its future strategy in India by the middle of this year.

He indicated that the Italian bank may float an India-dedicated fund for funding infrastructure projects. It has already decided to invest about Rs 20 crore to pick up a stake in the Infrastructure Development Finance Company. Lanzara said this is indicative of the bank's long term interest in the Indian economy.

BNL was the first Italian Bank to have a representative office in India in 1986-87. It is now in the process of opening two more offices in New Delhi and Chennai.