GTF targets export factoring business worth $200 million

Our Bureau

Pune, Oct 8: Global Trade Finance Private Limited (GTF) is looking at doing export factoring of $200 million and forfaiting business of $20 million in the first full year of operations in the country. Mr Arvind Sonmale, deputy managing director of GTF said factoring and forfeiting was not accepted easily in the Indian market as there were not many established players offering these services in India.

“Till now there was reluctance among exporters to opt for alternative credit such as factoring and forfeiting but now with GTF providing a one-stop window for their credit requirement they will see more value addition in factoring and forfeiting,” Mr Sonmale said.

GTF began operations in September 2001 and has started getting enquiries from pharma, leather, granite, textile and software companies for accessing these finance products. Many of the London-based forfeiting agencies look for a minimum business of $2,50,000 but GTF is willing to look at transactions worth $50,000 to meet the requirments of the Indian market. GTF is a joint venture of Exim Bank, WestLB Germany, Germany and IFC, Washington. The Euro 17.7 billion WestLB Group does forfeiting transactions exceeding $4 billion and is ranked number one in the business. Based in Mumbai, GTF has a branch in Delhi with another branch expected to come up in Bangalore. “We will be the face of WestLB in India,” Mr Sonmale said.

Mr RW Khanna, general manager, Exim said the network of Exim Bank would be used for familiarising business with these new products. Exim is widening the export credit options available to SMEs and globally oriented companies, Mr Khanna said.

GTF’s initital equity is at Rs 45 crore with Exim holding a 35 per cent stake, 40 per cent is with WestLB and the remaining 25 per cent with IFC, Washington.