Fimbank sells India affiliate company

Fimbank, the Malta-based trade finance bank with a global network spanning across Europe, Africa, Asia and the Americas, has successfully completed the sale to State Bank of India of its 38.5 per cent stake in GTF, an Indian factoring company, which Fimbank had acquired in December 2004.

The transaction marks the completion of the natural investment cycle in GTF - from start-up to maturity - and represents the first realisation of a strategic asset in Fimbank's growing portfolio of start-up factoring companies around the globe. The sale was executed for a gross consideration of $54.1 million, representing a 3.3 times multiple over the asset's book value.

Margrith Lutschg-Emmenegger, Fimbank's president, said:

"This sale, combined with the $25 million rights issue executed in December 2007, results in an almost doubled capital base for the Fimbank group."

With total assets of $571 million at the end of 2007 and a stock market capitalisation over $200 million, Fimbank (rated BB/Stable by Fitch) is a specialised trade finance bank with a focus on emerging markets.