Japan’s Mizuho Financial Group is planning to put several tens of millions of dollars into a fund to invest in companies belonging to India’s Tata Group, a source with knowledge of the deal said.
The fund is part of a broader alliance between Japan’s second-largest bank and the Indian conglomerate, the source said.
The alliance is also set to include financing from Mizuho for Tata companies and client introductions, the source said.
The deal underscores Mizuho’s push to expand overseas as the prospects for growth in its home market remain dim due to Japan’s sluggish economy.
Earlier this month the head of Mizuho’s international banking unit told Reuters the bank planned to expand into Myanmar, Laos and Bangladesh as early as the business year starting in April, while also expanding its network in China.