Indian Bank Kotak Mahindra has secured a US$51mn trade financing line from the IFC. It is the first bank in India to win IFC support under the multilateral’s global trade finance programme (GTLP).
The deal will help improve the Kotak Mahindra’s ability to provide short-term trade funding for small businesses.
Since the onset of the global financial crisis, banks in the emerging markets are struggling to access foreign currency financing. Under the IFC’s GTLP, Kotak Mahindra will be able to access a global network that will help direct financing towards the bank, support the establishment of new correspondent bank relations with global banks, with IFC providing some of the risk coverage.
Lars Thunell, IFC executive vice-president and CEO, says: “IFC’s support to Kotak Mahindra bank reflects our commitment to help businesses in India and other emerging markets overcome the effects of the global economic crisis, including by expanding the availability of trade finance.
Dipak Gupta, executive director, Kotak Mahindra Bank, says: “This important transaction, with our long-standing partner IFC, will help us provide a wider base of short-term foreign-currency trade finance products.”
Kotak Mahindra was established as private sector bank in India in 2003, and offers both corporate and commercial banking products. It has a network of over 200 branches of which up to 75 offering international trade finance to mid-market and small to medium-sized businesses.
Reader Comments