FIMBank injects $100 million into IFFSL

The Maltese trade financing bank has outlined plans to invest $100 million into India Factoring and Finance Solutions, after buying 30% of the company.

FIMBank intends to inject an additional $100 million into India Factoring and Finance Solutions (IFFSL) over the next five years as the bank mulls the set up of trade finance desks in India.

After purchasing a 30% stake in IFFSL from Punjab National Bank, FIMBank is looking to enhance its business in Asian-based pre-export financing and commodity finance.

FIMBank is awaiting a decision from the Reserve Bank of India, which is currently investigating a different trade finance licensing regime for specialised banks in the country.

A specialised licensing regime for trade would be viable, according to a spokesperson from FIMBank, as it would allow acceptance of deposits and in turn, make funding more attractive with cheaper rates for small and medium-sized enterprises.

FIMBank is currently eyeing offices in India’s tier two cities in order to capitalise on the country’s recovering economy.