Corporates in India are increasingly resorting to pledged shares to secure funding following tighter lending rules and financing difficulties, lawyers warn of troubles in the structure.
SAFE eases cross-border loan guarantee rules; HK court ignores China state secrecy laws; First loan under China-Korea currency swap transacted; Malaysia to roll out mobile e-payment platform.
India‘s ban on manufacturing and infrastructure companies' rupee borrowing from offshore Indian bank subsidiaries may raise their funding costs, lawyers say.
Utilising subsidiaries’ cash at the group level has become vital as more Asian corporates move onto the international stage. Bank independence is viewed as the Holy Grail of treasury.
How international logistics provider Dachser's in-house cash-netting strategy helped it lower exchange rate exposure by 80% and save monthly bank fees of €10,000 ($13,503).