South African banking giant Absa and Ecoban Finance Limited LLC, New York have established a working agreement to develop the group’s structured international trade and commodity finance business in selected emerging market countries. Initially, the co-operation will focus primarily on <
The two parties were in discussion to merge some ago but talks broke down (see GTR, March/April, p9).
The working agreement with Ecoban is in line with Absa’s intent to increase the group’s foreign currency income streams. Following its successful expansion into Africa and the conclusion of several significant deals in the region, it was decided to leverage the experience gained in the African trade and commodity market in other emerging markets.
As a result of this working agreement, three officers from Ecoban have joined Absa in New York as employees to market and structure business opportunities.
Ecoban’s representative offices in Sao Paulo and Mexico City will also facilitate the development of local deals and relationships, for structured trade and commodity finance.
Ecoban will continue to develop its traditional international trade and other financing business from bases in New York, London, Moscow, Sao Paulo, Mexico City, Singapore, Beijing, Seoul and throughout India as an independent transaction originator and financial engineer.
Ecoban’s placement of such transactions with the international banking and capital markets will continue to be handled by London, New York and Singapore. They will also continue to support multinational manufacturers and exporters of capital equipment in meeting their countertrade and offset requirements under their international supply contracts.