The UAE’s Mashreq Bank has announced it will enter India’s non-bank financial institution (NBFI) sector through by offering external commercial borrowings in Indian Rupees through an engagement with IL&FS Financial Services Ltd.
Through the IL&FS Group, Mashreq will serve the Indian market across a number of verticals, including financial services, power, transport infrastructure, real estate and education.
“We are pleased to have come to an agreement with IL&FS Group,” said Ahmed Abdelaal, head of corporate and investment banking at Mashreq Bank. “Through this agreement, we have provided an opportunity for corporate institutions across India to borrow from the international market on terms specific to the Rupee.”
Abdelaal added that the agreement “allows the borrower to expand their funding sources without any exchange risk, with marginal savings in pricing and elongated tenor.”
According to Mashreq, the borrowing facility is extended through the automatic route of the Rupee External Commercial Borrowing (ECB) guidelines issued by the Reserve Bank of India (RBI).
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