FIMBank consolidates stake in factoring joint ventures

08.04.2014

FIMBank has secured a controlling interest in factoring operator India Factoring after acquiring Punjab National Bank’s shareholding in the company. India Factoring is a pan-Indian operation with a head office in Mumbai and eight branches in major cities in India.  This transaction follows on the recent announcement that FIMBank acquired the shares of Trans Kapital Bank, thereby achieving a controlling interest in its Russian factoring operator FactorRus. FIMBank now has a controlling interest in both factoring joint ventures, with 79% of the shareholding in India Factoring and 80% of the shareholding in FactorRus.

Commenting on these developments, FIMBank President Margrith Lutschg-Emmenegger explained that: “Our new reference shareholders and the resources made available to us have enabled us to adopt an alternative strategy which has allowed FIMBank to take a controlling interest in these operations. This places us in a better position to drive our international factoring joint venture strategy and control its implementation. It also permits a centralised control of risk management, as now both India Factoring and FactorRus join MENAFactors in Dubai as FIMBank subsidiaries”.

On his part, FIMBank Group Chairman Dr John C. Grech stated that: “We understand that profitable revenue growth is the most important driver of long-term value creation. Our aim is to use the capital provided by our shareholders and lenders as efficiently as possible. By securing a controlling interest in these two factoring operations we will be in a position to consolidate our position in these markets and create long-term value”.

---