Indosuez builds on Asia network to expand<\/p>\n
HONG KONG (Reuter): Banque Indosuez is building its business
\nin Asian debt capital markets and corporate finance as part of
\nits strategy to expand its merchant banking capabilities in the
\nregion, company officials said.<\/p>\n
\"We are adding 10 to 15 people throughout the region in debt
\ncapital markets, client relations and corporate finance, said
\nJean-Claude Gruffat, executive vice president and chairman, Asia
\nPacific.<\/p>\n
The bank's strength is its distribution network, he said.<\/p>\n
\"Most of our competitors are issuer driven. Some of them can
\noriginate, but must rely on others to place the paper,\" he said.
\n\"We have a strong distribution base through our brokerage, now
\nour origination capabilities must be built up.\"<\/p>\n
Banque Indosuez has branches or subsidiaries in 22 Asian
\nlocations. Its core businesses are in corporate lending and in
\nstock brokerage via its wholly owned subsidiary W.I. Carr.<\/p>\n
In the capital markets, Gruffat said the company is putting it
\nmain efforts into distributing short-term paper to Asian
\ninvestors with the aim of branching out into longer-dated debt
\nsecurities once the region's markets mature.<\/p>\n
\"We started by arranging Thai commercial paper and issuing it
\nin Thailand and now we are placing it elsewhere in Asia and
\nEurope,\" said Gruffat.<\/p>\n
The bank is replicating that effort in other countries,
\nnotably Indonesia, India and Malaysia.<\/p>\n
Gruffat said the bank also wants to enter the syndicated loan
\nmarket, where it does not currently have a presence.<\/p>\n
\"In the past, we did not have the capital base. Now, with the
\nbacking of Credit Agricole, we have a much better capability and
\nwe believe that the syndicated loan market offers significant
\nopportunities, especially with mid-cap companies,\" he said.<\/p>\n
Credit Agricole, one of the world's largest banks, recently
\nacquired a 51 percent stake in Banque Indosuez from French
\nholding company Compagnie de Suez.<\/p>\n
Credit Agricole has the option to increase its stake to 80
\npercent from July 1, 1997. Suez may sell the remaining share to
\nCredit Agricole in the year 2000.<\/p>\n
Banque Indosuez can underwrite up to US$100 million per loan
\ntransaction without referring to the head office, Gruffat said.<\/p>\n
Rating agencies Moody's Investors Service and Standard and
\nPoor's Corp both said they may raise Banque Indosuez's long-term
\nratings following news that Credit Agricole would gain control.<\/p>\n
Banque Indosuez is rated A3 by Moody's and A-minus by S&P.
\nBanque Indosuez chairman Christian Maurin said he expects the
\nratings will be increased.<\/p>\n
Maurin said there is little overlap between Credit Agricole's
\nAsian business, which is concentrated in trade finance, and
\nBanque Indosuez's plans for the region.<\/p>\n
While Banque Indosuez sees especially good opportunities in
\nMalaysia, Thailand, Indonesia and India, it also is looking at
\nGreater China, the officials said.<\/p>\n
The bank has branches in Shanghai, Guangzhou and Shenzhen and
\nexpects its Beijing representative office to be approved for
\nbranch status soon.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/indosuez-builds-on-asia-network-to-expand-1447893297",
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"sponsor": "Okusi Associates",
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