As part of its global banking strategy, the country?s largest private sector bank, ICICI Bank, said it’s core banking expertise in mergersand acquisitions have significantly grown taking its compounded annual growth rate (CAGR) ten times higher since the past three years to $47.4 billion.
The bank has formed a dedicated global investment banking group (GIBG) to move across the life cycle of corporates like debt syndication, M&As, strategic financial advice, valuation & pricing analysis, mezannine or hybrid financing, private equity and deal structure,deputy managing director of the bank, Chanda Kochhar said. The idea is to participate in the M&A activities of Indian companies through advisory, financing and structuring of the deals, she added.
The sector is likely to see an increase of 100% on the front during the current financial year. It is evident from the fact that value of Indian deals grew at a CAGR of 140% from $8.3 billion in 2004 to $47.4 billion in 2006. Kochhar said, the total international balancesheet of the bank was $19 billion , whereas the bank?s international operation accounts for 20% of its consolidated banking assets. The bank has its presence in 18 countries.
Talking to media, Kochhar, said: ?Going by number of deals, ICICI Bank participated in 53% of the total outbound M&A deals during the calendar year 2006 and the figure rose to 79% in H1 of current year.”
Value of deals in H1 was $16.53 billion was 79%, she added. More importantly, the entire value which was done last year has already been achieved so far this year, Kochhar informed. In fact, the bank is a participant in $ 7.12 billion out of the total outbound deals worth $ 11 billion last year. Also, the bank’s international operations have already broken even, she added. To begin with, the bank had financed the Tata steel?s acquisition of Corus, which is valued at $12.8 billion, late last year.
