FIMBank plc - Factoring Joint Venture in India

On 4 November FIMBank announced that a Shareholders’ Agreement and Share Subscription Agreement have been entered into between FIMBank, Punjab National Bank (PNB), Banca IFIS (IFIS) and Blend Financial Services Limited (Blend). The Bank explained that these Agreements are paving the way for the setting up of a joint venture to carry out the business of factoring, forfaiting and trade finance together with other related activities in India through a company to be incorporated under the name India Factoring and Finance Solutions Private Limited (India Factoring) with its registered office situated in Mumbai, India.

FIMBank’s partners are Punjab National Bank (PNB), Banca IFIS (IFIS) and Blend Financial Services Limited. PNB is one of the leading public sector banks in India and provides the business of banking and other related services. IFIS has been in the business of factoring since 1983 and is authorised to carry out banking activities in Italy by the Bank of Italy whilst also specializes in domestic and international factoring activities. Moreover, Blend is an integrated global financial services company which offers debt syndication services, equity advisory services, insurance advisory services, cross border merger and acquisitions and management advisory services.

FIMBank stated that once all conditions and regulatory approvals laid down in the Agreements are satisfied it will subscribe to 49% of the total share capital of India Factoring (100 million shares at INR 10 per share) equally split up into two stages. PNB will hold 30% with IFIS subscribing to a 10% shareholding and 1% by Blend. Moreover, 10% of the total issued share capital is being earmarked to be placed under a trust to administer an employee stock option scheme for the benefit of selected employees of India Factoring.

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