- The MoU establishes a framework of partnership between the banks to meet the banking needs of corporate customers in India and Europe
Mumbai: ICICI Bank, a leading private sector bank in India, and BNP Paribas, a top European bank, have signed a Memorandum of Understanding (MoU) to cater to the banking requirements of European corporates operating in India and Indian companies in the European Union.
The MoU establishes a framework of partnership between the two banks for providing financial services to corporate customers operating in the India – Europe corridor.
The MoU was signed at an event held in Mumbai by Mr. Anup Bagchi, Executive Director, ICICI Bank, and Mr. Grzegorz Marczuk, Chief Operating Officer, BNP Paribas India.
Speaking on the occasion, Mr. Anup Bagchi, Executive Director, ICICI Bank said, “We are delighted to enter into a partnership with BNP Paribas, one of the oldest foreign banks in India. As the fifth largest economy in the world and with a strong focus to become a regional manufacturing hub, India is in the forefront of leading the world growth in the near future. This makes India a very attractive destination for trade and foreign investment, with Europe ranking amongst the top regions investing in India. With our strong physical network across the country, world class digital offerings and comprehensive suite of corporate and retail banking products, we are confident that ICICI Bank will support BNP Paribas’ customers grow their business in India, and make India one of their key markets. Further, we will leverage BNP Paribas’ pan-Europe presence to support our corporate clients for any of their banking requirements across Europe.”
Mr. Sanjay Singh, Head of Territory & CEO, BNP Paribas India said, “We do see several Indian corporates emerging as global champions. Our partnership with ICICI Bank will support corporates’ expansion plans with a right mix of ICICI Bank’s robust domestic physical network combined with our deep global footprint. This alliance will further strengthen our commitment to supporting Indian corporates in their global journey and European corporate clients looking to expand their footprint in India.”
About ICICI Bank: ICICI Bank Ltd (BSE: ICICIBANK, NSE: ICICIBANK and NYSE:IBN) is a leading private sector bank in India. The Bank’s consolidated total assets stood at ₹ 15,21,748 crore at December 31, 2022.
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About BNP Paribas: BNP Paribas Group has been in India since 1860 and is among the leading international financial institutions providing a wide range of financial services covering corporate & institutional banking, and personal investment services for individuals. As the second oldest foreign bank in India, BNP Paribas has branches in key metros and has a rich and broad offering across the entire range of corporate and institutional banking products and services, covering flow banking (transaction banking), financing, hedging, global markets, derivatives and investments. Asiamoney has also accorded “Best International Corporate Bank for India” to BNP Paribas in 2022.
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BNP Paribas China Ltd has become the first foreign bank to underwrite an onshore corporate bond issued by a Chinese domestic issuer in the China market, after being awarded the Type-A Corporate Bond Lead Underwriting Licence in September this year.
BNP Paribas China Ltd acted as a joint lead underwriter for China Universal Leasing Co. Ltd’s RMB 500 million bond, issued on December 9. The super short-term commercial paper marks the first time a foreign financial institution has worked with a domestic player to issue in the world’s second-biggest market.
CG Lai, CEO of BNP Paribas China Ltd, said: “We are honored to become the first foreign bank to underwrite a bond issued by a Chinese domestic company, underscoring our consistent commitment to China. As a fully-licenced bank, BNP Paribas brings the strength of our comprehensive onshore expertise to continually help more foreign investors navigate China’s market and deepen our engagement in China’s domestic financial market to help our clients achieve their long-term business ambitions.”
George Sun, Head of Global Markets for Greater China, said: ”We are pleased to successfully complete this deal and we will look into more opportunities that can help both onshore and offshore clients tap into the growing potential of China’s domestic bond market. ”
BNP Paribas China Ltd was granted a Type-A licence, allowing it to lead underwrite domestic corporate debt from Chinese companies, from China’s National Association of Financial Market Institutional Investors in September. Previously, BNP Paribas China was awarded the Type B licence in December of 2018.
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Ayesha de Kretser +852 2108 5458 ayesha.dekretser@asia.bnpparibas.com
The first Annual General Meeting (AGM) of SBI Life as a listed company took place on September 27th 2018 and did review the robust results of the company. On that occasion, BNP Paribas Cardif confirmed its commitment to continue supporting in its development SBI Life, a company which was created 17 years ago in partnership with State Bank of India (SBI).
SBI Life held on September 27th 2018, its first Annual General Meeting as a listed company. On that occasion, BNP Paribas Cardif did note the great performance of SBI Life for the year ended March 31st 2018, fully confirmed by the trend of the 1st quarter of the 2018/2019 financial year. In FY17-18, SBI Life achieved a 31% growth on Individual Rated Premium (from Rs 59.4 billion in FY17 to Rs 77.9 billion in FY18) confirming its leadership position (1st rank in the private sector), such leadership position fully maintained as of August with a growth of 8,4% to Rs 26.2 billion (April-August 31, 2018). Overall on New Business Premium basis SBI Life registered a growth of 28.5% over same period previous year to Rs 44.6 billion, as of August 31, 2018.
SBI Life is the leading privately held life insurance company in India operating mainly through its 115,000 agents and SBI’s 22,000 bank branches. The company was created in 2001 through a long-term partnership between State Bank of India, India’s largest banking group, and BNP Paribas Cardif, the world leader in creditor insurance and a specialist in bancassurance partnerships.
In 2017, SBI Life launched a successful initial public offering on the Bombay Stock Exchange and the National Stock Exchange of India. This initial public offering was a major milestone in the history of SBI Life. It did demonstrate the ability of State Bank of India and of BNP Paribas Cardif to create value through their long term partnership as shareholders of SBI Life.
BNP Paribas Cardif confirms its strong willingness to continue to support SBI Life in its continuous development.
However, in order for SBI Life to achieve its 25% minimum public shareholding, which is a regulatory requirement in India, BNP Paribas Cardif may reduce its stake in SBI Life in the next quarters. No firm decision has been made regarding the size, timing or nature of such reduction in stake.
“We are fully confident in the strength of the bancassurance model in India and in the continuous success of SBI Life. BNP Paribas Cardif has been associated with SBI Life for the last 17 years and will continue in the future,” said Renaud Dumora, Chief Executive Officer of BNP Paribas Cardif.
About SBI Life
SBI Life is the leading private insurance company in India. The insurer was created in 2001 through a long-term partnership between State Bank of India, India’s largest banking group with more than 420 million clients, and BNP Paribas Cardif, the world leader in creditor insurance4 and a specialist in bancassurance partnerships.
SBI Life markets a complete portfolio of life insurance, retirement savings and personal protection products that meets the full range of insurance cover needs in the Indian market. With 15,000 employees, the company has steadily experienced very robust growth since its founding.
About BNP Paribas Cardif
World leader for creditor insurance[1], BNP Paribas Cardif plays an essential role in the lives of insured customers, providing them with savings and protection solutions that let them realize their goals while protecting themselves from unforeseen events. As a committed enterprise, BNP Paribas Cardif strives to have a positive impact on society and make insurance accessible to the largest possible number of people.
In a world shaped by the emergence of new uses and lifestyles, the company, a subsidiary of BNP Paribas, has a unique business model anchored in partnerships. It co-creates solutions with almost 500 partners distributors in a variety of sectors (banks and financial institutions, automotive companies, retailers, telecommunications companies, energy companies, Independent Financial Advisors and brokers…) who then market the products to their customers.
BNP Paribas Cardif is a recognized global specialist in personal insurance, serving 100 million clients in 35 countries with strong positions in three regions – Europe, Asia and Latin America. BNP Paribas Cardif also plays a major role in providing financing for the economy. With over 10,000 employees[2] worldwide, BNP Paribas Cardif had gross written premiums of €29.7 billion in 2017.
Follow the latest news about BNP Paribas Cardif
BNP Paribas has appointed Suneet Weling as Managing Director and Head of Advisory, Capital Raising and Financing for India, effective from February 1, 2018. Mr Weling will be responsible for the origination of advisory and capital market transactions for BNP Paribas’ corporate and institutional clients in India.
Joris Dierckx, CEO and Country Head of BNP Paribas India, said: “Suneet’s appointment will help to bolster our investment banking services at a time when Indian corporates are looking for expansion opportunities through funding in both domestic and global capital markets, as well as through M&A. Suneet’s experience in the Indian financial industry, as well as with global financial institutions leaves him well-positioned to help our clients achieve their ambitions to grow.”
Ganeshan Murugaiyan, Head of Investment Banking, BNP Paribas India, said: “Suneet brings to the team strong investment banking experience and deep corporate relationships. His appointment demonstrates our commitment to strengthening our investment banking presence in India.”
With 22 years’ experience in banking, Mr Weling was most recently Executive Director for Investment Banking at Kotak Mahindra Capital Company in India. Prior to this he held roles with Deutsche Bank in Singapore and Merrill Lynch and UBS in New York.
Mr Weling holds a Bachelor of Electrical Engineering from the University of Mumbai, a Master’s degree in Business Administration from the Stern School of Business at New York University and a Master’s degree in Public Administration from the John F. Kennedy School of Government at Harvard University.
Press Contacts:
Anjali Patil 022-6196 5301 anjali.patil@asia.bnpparibas.com
About BNP Paribas in India (http://www.bnpparibas.co.in)
BNP Paribas was one of the first foreign banks to establish a presence in India in 1860. Today, it is among the leading corporate banks in the country, with branches in eight major cities. BNP Paribas offers a wide range of financial services covering corporate and institutional banking. In addition, BNP Paribas has subsidiaries and strategic partnerships that offer services in wealth management, asset management, retail broking and personal finance.
Worldwide, BNP Paribas has a presence in 74 countries with more than 190,000 employees. It has key positions in its three main activities: Domestic Markets and International Financial Services (whose retail-banking networks and financial services are covered by Retail Banking & Services) and Corporate & Institutional Banking, which serves two client franchises: corporate clients and institutional investors. In Asia Pacific, BNP Paribas is one of the best-positioned international financial institutions with an uninterrupted presence since 1860. Currently with over 15,000 employees* and a presence in 14 markets, it provides clients with product and service solutions tailored to their specific needs, and continues to develop its franchise in the region.
* excluding partnerships
BNP Paribas announced that it has been awarded in China market making status for the new Bond Connect scheme and executed its first trade through the scheme, which officially launched today, providing another route for accessing the world’s third biggest bond market (USD 9.4 trillion according to Bank for International Settlements as of September 2016).
Bond Connect heralds the next major phase in China’s financial market liberalisation and BNP Paribas expects its development, alongside other related reforms, to boost foreign holdings of Chinese bonds from a current 2% closer to the international norm of about 10%. According to latest China Central Depository & Clearing data, foreign holdings of Chinese bonds rose for the third straight month to RMB 775 billion in May.
“Over the last year China has been normalizing policy and we’ve seen the currency stabilize and bond yields start to become more attractive,” said BNP Paribas Head of Global Markets for China, CG Lai. “But the MSCI’s decision to include Chinese A shares has prompted heightened expectations – like we’ve never seen before – and really demonstrates that the world needs to recognize and embrace the Chinese market. It’s only a matter of time before we see bonds also included in international indices.”
Bond Connect is complementary to the Direct China Interbank Bond Market (CIBM), QFII and the RQFII routes for offshore qualified institutions investing in China’s domestic bond markets. Featuring direct linkage between onshore/offshore setup, Bond Connect enables investors to conduct trading and settlement via a single offshore platform. For investors it is expected to be more cost and time effective compared to other access channels, with simplified application procedures, less documentation requirements and shorter turnaround times.
Philippe Benoit, Head of Asia Pacific, BNP Paribas Securities Services said, “We are seeing growing interest from offshore institutions keen to take a foothold in this market. As a universal bank we provide fully fledged integrated solutions from execution to custody, to simplify access for clients to this major market.”
“By broadening the investor pool to attract more foreign investment, we believe China should improve the quality of its debt markets, as well as generate cash inflows that will help with Beijing’s battle to stem capital outflows,” said Mr Lai.
As a Central Moneymarkets Unit member of the Hong Kong Monetary Authority, BNP Paribas can provide all services, from trading to clearing to settlement.
BNP Paribas is pleased to announce that it has been designated as a primary liquidity provider for the offshore Renminbi (RMB) market in Hong Kong (the “Primary Liquidity Provider”) by the Hong Kong Monetary Authority (HKMA).
As a Primary Liquidity Provider, BNP Paribas shall work closely with the HKMA to:
- promote the use of the Hong Kong RMB liquidity pool to provide offshore RMB funding to other financial institutions and corporate customers ;
- extend the usage of RMB in the global offshore capital markets and in particular in the foreign exchange, interest rate, equity and derivative space through its global product platform; and
- expand its RMB Competence Centre in Hong Kong as per the group’s strategy in order to promote the international use of RMB and capture RMB business opportunities worldwide for clients.
BNP Paribas’ Head of Greater China and CEO of BNP Paribas Hong Kong Branch, Paul Yang, said: “As one of the most active banks in the CNH market, BNP Paribas is honoured to be designated as a Primary Liquidity Provider by the HKMA. Under the leadership of the HKMA, Hong Kong has successfully become a global offshore RMB business hub and plays a pivotal role in the new era of China’s growth story. With BNP Paribas’ extensive global network and solid RMB business platform, we are well-positioned to embrace the initiatives that facilitate the internationalisation of RMB and help our clients to grow their RMB business.”
To consolidate its platform helping clients capture the RMB business opportunities around the world, BNP Paribas has set up the RMB Competence Centre based in Hong Kong. It acts as a global platform across all the business lines in BNP Paribas that drives the RMB strategy across all geographies (Asia, Europe, Middle East, Africa, Americas) and all product lines including Financing, Transaction Banking, Capital Markets, Asset Management, Securities Services and Wealth Management.
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