Tata Capital and Japan’s Mizuho Corporate Bank (MHCB) have entered into a strategic alliance for cooperation in a range of business areas. Some of the key areas of cooperation will be Ninja loans, project and infrastructure finance and treasury products.
A ninja loan is a type of subprime loan issued to borrowers with no income, no job, (and) no assets. The memorandum of understanding is aimed at fostering business cooperation, enhancing cross-market value creation capabilities, strengthening competitive advantages in addition to aiding each other in gaining a deeper understanding of the Indian and Japanese markets.
This MoU follows the agreement signed in February this year which involved business collaboration between the two companies in areas such as private equity and wealth management. Since then, Tata Capital has firmed up its private equity plans in which it will launch different private equity funds (of $200-300 million each) focusing on different sectors such as technology, communications, healthcare and midcap space. A launch is expected in September this year.
Tata Capital, which is a wholly owned subsidiary of Tata Sons, aims to provide services in seven broad areas of business, namely — retail finance, corporate finance, distribution and broking, capital markets, private equity, wealth management and rural finance. Praveen P Kadle, managing director, Tata Capital, said, “Our MoU today will help both the entities co-develop innovative offerings and shared services platforms for the evolving corporate customers. The alliance is a step towards Tata Capital fulfilling its vision of emerging as a holistic provider of financial services.”
MHCB is a wholly owned subsidiary of Tokyo-based $1.44 trillion Mizuho Financial Group.Hidetake Nakamura, managing executive officer of the International Banking Unit of MHCB said, “We are very excited about this opportunity to work with Tata, one of India’s most recognised names, as we jointly attempt to expand the services available to customers. Combining our two firms’ expertise and coverage should prove to be a strong and able seed for our continued growth.”