QBiz: L&T Bags $250 Mn Project; Indian Banks at High Risk: Moody’s
1. Moody's Flags Indian Banks' High Risk Exposure
Large loans given to businesses with poor repayment capacity have raised Indian banks’ exposure to risks, which are now second only to China in the Asia Pacific (APAC) region, Moody’s Investors Service said.
Even as overall credit penetration in India remains low, exposure to risky corporate borrowers has increased the risks of defaults, the agency said in a report on Wednesday.
Although private sector credit as a percentage of gross domestic product for India is the third lowest in the region, a considerable portion of it is owed by businesses with weak debt servicing ability. Private sector credit includes debt owed by households and private non-financial sector.
2. L&T Consortium Bags $250 Million Power Project in Bangladesh
Infrastructure major Larsen & Toubro (L&T) today said a consortium formed by it and Samsung C&T Corporation has bagged a USD 250 million power plant contract in Bangladesh.
"Bangladesh Power Development Board (BPDB) has awarded the contract for setting up Bibiyana South 400 MW Combined Cycle Power Plant Project to a consortium of Larsen & Toubro (L&T) and Samsung C&T Corporation of South Korea," the engineering firm said in a statement.
L&T will execute the engineering, procurement, and construction contract valued at approximately USD 250 million.
This project will be executed by the Gas Based Power Projects Business Unit of L&T, based out of Vadodara.
3. IBC Ordinance May Disqualify Global Private Equity Funds
The broad sweep of India’s amended Insolvency and Bankruptcy Code (IBC) may shut out several global private equity (PE) funds who have tied up at least $10 billion to invest in Indian non-performing assets, legal experts said on Wednesday.
The changes to the Insolvency and Bankruptcy Code (IBC), aimed at preventing errant promoters from regaining control of their assets, could disqualify many global funds, particularly over a dozen active investors exclusively buying troubled assets.
Any person or entity who has guaranteed the debt of any firm under insolvency or liquidation under any jurisdiction, is barred from bidding for assets under the amended code.
“This ordinance, if read literally, would in all likelihood disqualify most global private equity funds, especially those specialising in acquiring and financing troubled assets, from submitting a resolution plan under the Code,” said Sanjeet Mallik, partner at Samvad Partners, a law firm.
4. Mahindra & Mahindra to Hike Share in Financial Services Arm, Invest Rs 1,055cr
Mahindra & Mahindra said on Wednesday that it will increase holding in its arm Mahindra & Mahindra Financial Services Ltd (MMFSL) to 53.25 percent through acquisition of 2.5 crore shares for a cash consideration of Rs 1,055 crore.
The company has agreed to subscribe 2.5 crore equity shares of Rs 2 each of MMFSL at a premium of Rs 420 per share on a preferential basis, Mahindra & Mahindra (M&M) said in a BSE filing.
After the acquisition, the company's holding in MMFSL will increase to 53.25 percent from 51.2 percent earlier, it added.
5. IFC Bets on Green Power, Invests $15 Million in CleanMax Solar
Reaffirming its green credentials, the International Finance Corporation (IFC) has made an equity investment of USD 15 million in CleanMax Solar.
This is IFC's first equity investment in grid-connected distributed generation globally, an official statement stated today.
CleanMax Solar, a leading sustainability partner for large corporates, enjoys the No. 1 position in India as a rooftop solar developer with 24 percent market share, according to Bridge to India May 2017 report.
It is commissioning over 250 MW of open access solar farms to provide power to corporate users, the statement added.
6. South Indian Bank Raises Rs 490 Crore via Bonds
Kerala-based South Indian Bank announced raising of funds of Rs 490 crore by way of private placements of Basel III compliant Tier 2 Bonds, on Wednesday.
Besides augmenting Tier 2 capital, this exercise will further strengthen bank's Capital Adequacy Ratio (CAR) to support the targeted business growth, the bank said in a press release.
"The infusion of fresh capital would improve the CAR by 108 bps, which will take care of the capital requirement for the coming year at the targeted business growth of 18 percent," South Indian Bank, MD and CEO, V G Mathew said.
7. Shopmatic, GoDaddy Announce Strategic Alliance
Shopmatic, a Singapore-based e-commerce company that enables merchants to take their businesses online, entered into a strategic partnership with GoDaddy, a Shopmatic release said on Wednesday.
Customers of GoDaddy, the world's largest cloud platform dedicated to small, independent ventures, will now have a seamless way to connect their domain name to Shopmatic's webstore offering to build a global online presence.
Similarly, Shopmatic customers will be able to view and purchase .net, .org, .com and .in domain names from GoDaddy.
The partnership will allow Shopmatic merchants to secure a desired domain name from GoDaddy, as well as the ability to easily direct customers to an existing website, blog, marketplace or any social media profile with a single click, the release added.
8. Manasi Narasimhan Joins Mastercard as Marketing Vice President
Mastercard announced the appointment of Manasi Narasimhan as the Vice-President, Marketing and Communications on Wednesday.
In her new role, Narasimhan will be responsible for driving Mastercard's marketing and communications strategy for South Asia region, Mastercard said in a statement.
She will also oversee the development of strategies and campaigns for the company's advertising, sponsorships, promotions, as well as digital and consumer marketing initiatives across South Asia.
Prior to this she was VP - strategic marketing group for Godrej Industries.
9. Chumbak Raises Rs 85 Crore in Investments
Lifestyle brand Chumbak, announced it has raised Rs 85 crore led by Gaja Capital, on Wednesday.
It added in a statement that existing investors Matrix Partners India, Seedfund, and Narayan Ramachandran, the ex-country head of Morgan Stanley also participated in the financing round.
Founded in 2012 by Shubhra Chadda and Vivek Prabhakar, Chumbak began its journey with India-inspired designs for souvenirs and accessories.