Prime Highlights
- Bank of Baroda and Mizuho Bank have partnered to expand corporate financing.
- The deal covers M&A financing, structured lending, and cross-border banking.
Key Facts
- Mizuho Financial Group is one of Japan’s largest financial institutions.
- Bank of Baroda is a public sector bank with operations in 15 countries.
Background
Bank of Baroda has entered into a strategic alliance with Japan’s Mizuho Bank for better co-operation in corporate banking services, structured financing, cross-border financing solutions and M&A financing. The partnership joins the hands of Mizuho Bank with its international network and structuring capabilities in finance, together with the corporate banking strengths and extensive coverage across India of Bank of Baroda.
The deal involves working together in acquisition financings by means of origination, structuring, co-underwriting, and syndication. They will also work together on specific M&A consultancy projects, secondary risk distribution, and banking services, including interest rate hedging, escrow, and foreign exchange. The partnership further involves knowledge-sharing programs to enhance the skills of acquisition finance underwriting, transaction structuring, and inter-creditor arrangements.
Lalit Tyagi, Executive Director of Bank of Baroda, said that the alliance is coming at a time when Indian companies are actively involved in mergers and acquisitions. Consolidation is happening in all sectors as a result of strong demand from infrastructure development, digital transformation and energy transition drive, which makes such collaborations more and more relevant, he said.
According to him, India is still a very important strategic market for Mizuho Bank, which has a Senior Managing Director and India Co-country Head, Piyush Agarwal. The long association between the two banks and the fact that they both catered to cross-border financing would also help in finding more opportunities for clients operating both in India and abroad, he added.
Mizuho Financial Group has been operating in India for almost 30 years via its different group companies. Established in 1908, Bank of Baroda is one of the most prominent public sector banks in India with a presence in 15 countries via its physical and digital banking presence.
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