Rabo Finance plans bank

Rabo Finance plans bank

MUMBAI, APRIL 16: Non-banking finance company Rabo India Finance Private Ltd has decided to convert itself into a bank following its recent success as a strategic and Financial advisor in Tata Tea Ltd's 271 million Pound Sterling leveraged buyout (LBO) of UK based multinational tea company Tetley.

It may be recalled that in TTL's buyout of Tetley, Rabo India's parent, the Netherland's based Rabobank International had contributed 215 million Pound Sterling by way of debt.

The acquisition, the largest ever by an Indian corporate abroad, cost Tata Tea a whopping 305 million Pound Sterling of which the equity component is 70 million Pound Sterling

Kolff said, Rabobank's team in India, which had worked on the Tata Tea deal for over a year, had done a thorough job.

``It shows that the Rabo Group, which was also the sole lead manager and arranger for the deal, can deliver on such deals in India,'' he averred.

R K Krishna Kumar, vice chairman of TTL, said, Tata Tea would now concentrate on consolidating its acquisition of tea gardens in Sri Lanka as also the recent Tetley buyout under one umbrella.