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HSBC to fund takeoversNEW DELHI: Hongkong and Shanghai Banking Corporation (Hongkong Bank) is keenly looking at financing takeovers in In...

HSBC to fund takeovers

NEW DELHI: Hongkong and Shanghai Banking Corporation (Hongkong Bank) is keenly looking at financing takeovers in India, new CEO of the bank Aman Mehta said today. The bank is open to fund takeovers in India and are in advanced stages of negotiations to finance at least two takeovers, Mehta said. "Acquisition funding is customer driven, if a customer needs it we are open to it," the first Indian CEO of the London-based bank said. He, however, said the number of takeovers in India was very little compared to other countries. Mehta said the bank would finance takeovers based on the advice of its investment banking arm, HSBC capital markets since the latter had more such opportunities and experience than a commercial bank. Mehta said the bank would prefer funding friendly takeovers and both the takeovers the bank was negotiating were "not hostile". Mehta said the bank itself was looking at takeover of smaller banks in East Asian markets to take full advantage of themeltdown.

Tax-free pvt placement bonds next week

CHENNAI: The Housing and Urban Development Corporation (HUDCO) plans to raise Rs 125 crore through a tax-free bond issue next week, HUDCO chairman and managing director V Suresh said today. The bonds would be available only by private placement among banks and financial institutions and was not open for public subscription, Suresh said at a press conference here. Apart from this, HUDCO was planning to raise Rs 400 crore through issuance of taxable infrastructure bonds soon, as part of its continuing efforts to raise resources, he said. To a question, Suresh said sanctions would not affect HUDCO’s resource-raising efforts, as only 15 per cent of its funds had external sources. He said HUDCO had been allocated Rs 300 crore from the money raised by State Bank of India’s Resurgent India Bonds.

ICRA downgrades 20th Century Fin

NEW DELHI: Credit rating agency ICRA has downgraded rating of 20th Century Finance Corporation Ltd from MAAA’ toMAA-‘. The ratings of the non-convertible debenture and fixed deposits of 20th Century Finance were also placed under rating watch with developing implications in view of a merger proposal being considered, ICRA said. The revised rating indicates high safety. The downgrade takes into account decline in asset quality and increase in non-performing assets (NPA) of 20th Century Finance, largely on account of delay in repayment of corporate clients and an overall economic slackness which affected commercial vehicle segment, ICRA said. The company has ceased its car finance operation, which would henceforth be done by joint venture set up along with general motors acceptance corporation. ICRA said this may result in further decline in overall quality of asset and collection efficiency in the near future as the performance of car financing business has traditionally been better than commercial vehicle financing.

Pentafour products downgraded

MUMBAI: Rating for the Rs 500 million non-convertibledebenture (NCD) programme of Pentafour Products Ltd (PPL) has been downgraded from BBB’ to default category D’ by Credit Analysis and Research Ltd (CARE). The rating has been revised after taking into consideration delay in payments towards interest rate on the NCDS, CARE said. The outstanding rating of the company’s fixed deposit programme has also been revised downward from BBB (FD)’ TO BB (FD)’, CARE said.