The Hindu : Business : StanChart to launch credit linked notes

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Wednesday, Oct 04, 2006
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StanChart to launch credit linked notes

NEW DELHI: Standard Chartered Bank (StanChart) plans to launch equity-linked and credit-linked notes for Indian corporates, which are likely to spend an estimated $150-200 billion in the next three to five years by way of capital expenditure, infrastructure and mergers and acquisitions (M&As). "The ones that are in the forefront of planning are equity-linked notes and credit-linked notes,'' StanChart CEO (Wholesale Bank) and Director Michael Rees said here.

Indian corporates, who are going global, are likely to incur heavy capital expenditure through either equity or debt, said Bala Swaminathan, StanChart Regional Head (Wholesale Banking). The equity and credit linked products would give corporates more option to raise funds and the notes would help them manage their forex requirements.

The bank, which is a leader in cross-border M&As financing, is in the process of executing some more M&A deals for Indian corporates that include some transactions to the volume of a billion dollar or so.

The bank sees pharma, auto, metal and mining are some of the sectors where merger and acquisitions are likely to happen. — PTI

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