Barclays Bank Stays Committed To India

The global heads of the investment banking arm of Barclays Bank are set to meet top government officials, regulatory agencies and key corporate clients on a re-commitment mission to the country. The two-day tour, commencing today, comes with a direct message to express their long-term commitment to the Indian markets, after BZW shut down their equities operations in the country recently.

The Barclays Capital vice chairman Robert Wade-Gery and Asia Pacific chief Roger Davies will meet the Ministry of Finance officials, Industry ministry, the Securities and Exchange Board of India and MNC clients, besides the top brass of the group's investment banking team in Mumbai. According to marketmen, the aim would also be to dispel fears that the group will no longer be able to command a presence in India after BZW shut down Indian equities operations in December 1997.

 

"We hope to show that the strong commitment is there...with the focus on project financing and debt capital markets," a source said.

Barclays Capital will focus at the full array of debt, lending and risk management products - from project finance advisory services and debt capital markets/money market operations, derivatives trading to corporate finance, short and medium term financing and trading and placing of bonds.

Barclays Capital has now bagged two key mandates in the oil/power sector. It is currently advising SPIC Electric Power Corporation in developing the 525 MW IPP at Tuticorin. The project expects a financial closure in the Q3 of 1998. Further, the Essar Group is being advised in financing its stake in the $ 100 m Ratna Oil Field project. Sources said the project is currently awaiting the product sharing contract with the ONGC.

Besides this, the investment bank has advised British Gas in its acquisition in Gujarat Gas Ltd, under the new Sebi takeover code. Some of the key international clients, which Barclays Capital has advised on assignments include Enron, The Energy Group and Singapore Power.

By late last year, Barclays Bank announced their decision to move out of equity research operations globally, which resulted in the downsizing of operations at BZW. In India, of the 90-odd staff which initially formed part of the BZW team in 1993-94, at least 65-70 staff will now be retained in the new entity, Barclays Capital.

This is marketed as the new investment banking arm of Barclays Bank and is headed by Ajay Sondhi as the managing director.

With other global investment banks/FIIs like Peregrine Capital, NatWest Markets and Deutsche Morgan Grenfell all deciding to downsize operations and/or alter their focus of trading operations in India, market circles were of the view that BZW's presence in India would not remain strong in the long term.