Banking M&A Digest #66 (19.3.2020)

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Corporate Financier’s Notes  

by Aivars Jurcans

Done! And Done

SBI Cards & Payment Services, India’s 2nd largest credit card issuer with c.18% market share, raised USD 952 million in an IPO. The offering which valued the company at USD 8.6 billion was 22.5 times oversubscribed.

Source: Bloomberg

Banco Santander has agreed to buy a 50.1% stake in Mercury TFS, a Spanish fintech that develops trade finance software for companies, for EUR 30 million.

Source: Reuters

Deals On The Table

Global Exchange Group, a Spanish foreign exchange business, is said to be considering buying International Currency Exchange, its UK rival, owned by Lenlyn Holdings (the parent of Raphaels bank). 

Source: Bloomberg

Oman Insurance is said to be considering making a bid for the Middle Eastern operations of Axa, a French insurer, which provide life, property and health insurance.   

Source: Bloomberg

Financial Lingo

“Lombard loans” – loans issued to wealthy clients which are secured against a portfolio of liquid assets like equities and bonds.

Source: FT

Exciting Numbers

To help ease stresses the European Central Bank has offered up to EUR 2.3 trillion in cheap borrowing for eurozone banks, and greed up some EUR 550 billion in capital by temporarily lowering requirements.

Source: WSJ

Personal consumption accounts for roughly 2/3 of America’s USD 21 trillion GDP.

Source: FT

Berkshire Hathaway, Warren Buffet’s investment vehicle, is sitting on a mammoth USD 128 billion in cash.

Source: FT

UBS, a Swiss bank, reported loans of USD 179 billion to its wealth management clients at the end of 2019, up from USD 175 billion a year earlier. However, its ratio of loans to invested assets is 7% vs the industry average of 12%.

Source: FT

JPMorgan has more than USD 400 billion of unfunded credit commitments outstanding, according to its filings.

Source: FT

A Thought Worth Noting

“It’s worth starting to spend. When people are risk-oblivious, we should be terrified. But on the other hand, when they’re terrified, we can be aggressive.”

Howard Marks, co-founder, Oaktree Capital Management

 

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Aivars Jurcans has more than 20 years of corporate finance and investment banking experience. His services are currently available through MURINUS ADVISERS.

Design by Artis Briedis, Photo by Joe Taylor on Unsplash

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