09/05/2018 07:44 AST

Mashreq Bank on Tuesday announced its entry into the non-bank financial institution (NBFI) space in India through an engagement with IL&FS Financial Services Ltd to offer external commercial borrowings (ECB) in Indian rupees.

Through the IL&FS Group, Mashreq will serve the Indian market across various verticals including financial services, power, transport infrastructure, real estate and education, providing new avenues for Indian companies to borrow from overseas markets.

“We have come to an agreement with IL&FS Group, one of the largest institutions in India. 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. This allows the borrower to expand their funding sources without any exchange risk, with marginal savings in pricing and elongated tenor,” Ahmad Abdelaal, head of the Corporate & Investment Banking Group of Mashreq Bank, said in a statement on Tuesday.

This borrowing facility is extended through the automatic route of the rupee external commercial borrowings guidelines issued by Reserve Bank of India (RBI).

“The collaboration between IL&FS [through IL&FS Financial Services] and Mashreq Bank will go a long way to support the capital raised for infrastructure development in India. We have been actively working with several institutions globally on innovative funding models, [and] this ECB is a testimony of the same. Such foreign borrowings not only complement the efforts of domestic institutions to fund infrastructure projects but also help in diversification of funding sources. We look forward to further strengthening this relationship and grow the India-UAE business corridor,” stated Ramesh C. Bawa, managing director & CEO of IL&FS Financial Services.

IL&FS Group was the pioneer in raising the first ever ECB in Indian rupees, popularly referred to as Masala Loans, in November 2016. Historically, NBFIs predominantly borrowed from banks and other institutions in their domestic market. Through this agreement, Mashreq Bank has opened new avenues for external commercial borrowings funded through the UAE and disbursed in Indian rupees.

Gulf News

Mashreq calibrates HR strategy for digital transformation


Mashreq, one of the oldest financial institutions in the UAE, is working on a novel human resource (HR) strategy to suit the requirements of its ongoing digital transformation, Ashfaq Bandey, vice-pr

Gulf News

Mashreq launches cashback campaign


Mashreq Bank launched its ‘Cashback Campaign’ for business banking clients, with the aim of rewarding entrepreneurs for growing their deposit balances. From July 1 until September 30, 2018, Mashreq’s

Gulf News

Mashreq’s first half 2018 net profits up 5.2%


Mashreq has posted first-half 2018 net profit of Dh1.2 billion up 5.2 per cent compared to Dh1.1 billion in the same period in 2017. For the second quarter of this year the bank reported a net profit

Gulf News

Ticker Price Volume
UGH 1.12 0
BATELCO 0.25 13,000
NBB 0.60 0
GFH 0.38 1,792,550
BNH 0.39 0
ALBH 0.63 103,108
ARIG 0.42 0
MASQ Sector Market
Dividend Yield (%)
Relative Strength
  • 1-Month
  • 3-Month
  • 1-Year
Volume Change
  • 10D Avg Vs 90D Avg
Price Vs…
  • 52-w high
  • 50-day moving avg.
  • 200-Day Moving Avg
Ticker Price Change
FAB 13.80 0.10 (0.72%)
RJHI 84.20 0.20 (0.23%)
NCB 41.50 0.30 (0.72%)
SAMBA 30.25 -0.55 (-1.79%)
NBK 834.00 2.00 (0.24%)
Shaker Group narrows Q1 losses, nets good revenue growth


Saudi-based Al Hassan Ghazi Ibrahim Shaker Company (Shaker Group), a leading importer, manufacturer and distributor of air conditioners and home appliances, has recorded a first quarter net loss of S

Trade Arabia

Work in full swing at Adnoc refining, petchem project sites


Abu Dhabi National Oil Company (Adnoc) has announced that steady progress is being made on the development and expansion of refining, petrochemical and derivatives sites within its Ruwais Industrial

Trade Arabia

Ooredoo webinar with Plug and Play focuses on business ecosystem


Ooredoo recently held a webinar that shared learnings and insights into best innovation practices for the business ecosystem. The live "Best Practices" webinar, held on June 10, was co-hosted with Si

Gulf Times

OAB merger with Alizz on track


Consolidation in the Omani banking sector is a crucial need of the hour so that the sector could grow and stay competitive. Yet, we have not witnessed much progress to date on a wider scale. Despite

Times of Oman

Barwa Bank names winners of Thara’a draw


Barwa Bank announced yesterday the names of the winners of the most recent round of Thara’a draw, its Shariah-compliant savings promotional scheme, at the Bank’s headquarters. As the draw results sho

The Peninsula