Ifc, West Lb And Exim In Venture

International Finance Corpo-ration (IFC), West LB Bank and Export Import Bank of India (Exim Bank) will be forming a joint venture company for structured finance activities, shortly. Each of the three companies are expected to be picking up an equal stake in the to be formed venture. However, the amount of investment in the new company could not be confirmed.

According to sources, the new company would be providing the range of project and structured finance activities including factoring and forfeiting. "IFC would only pick up equity in the joint venture whereas the other two entities would be providing the expertise for the activities as well. The management structure for the company is yet to be decided," a source said.

 

Veena Mankar, country representative for West LB Bank, declined to comment on the upcoming company. Official spokesperson of Exim Bank too refused to comment on the issue of the new venture though they confirmed the setting up of the same.

West LB Bank is a German bank which has only one representative office in India at Mumbai. Exim Bank is a fully owned subsidiary of the government of India and they would be entering structured finance activities for the first time though they have been providing forfeiting services till now.

Exim Bank have of late extended a line of credit to their counterparts in Thailand for an amount of $10 million. This will facilitate exports of capital and engineering goods, consumer durables, industrial manufactures and related services. Thai importers would get finance up to 90 per cent of the contract value. Exim Thailand offers long term as well as short term credit in domestic and overseas markets in local and foreign currencies.

Exim Bank is also expected to sign up for a line of credit with the Development Bank of Korea for an amount of $20 million in the near future.