Religare, FSG Capital in joint venture banking


INDIA-BASED investment bank Religare Capital Markets has partnered with Filipino investment bank FSG Capital Inc. in a joint venture to provide financial advice and assistance to “underserved and rapidly growing” Filipino mid-market companies, a bank official said on Thursday.

Religare Chief Executive Officer Sutha Kandiah said his company is the first Indian bank to enter into a partnership with a local investment bank company.

He said they will form “a separate investment banking entity” likely to be named Religare-FSG Capital, which will provide financial advices and underwriting services to mid-market companies planning public offerings and fund raisings through the capital markets.

Kandiah said Religare would provide international reach given that the markets covered by the top investment banks in the Philippines are “limited.”

FSG Capital President Mark Frondio said the partnership would bring “more value added” services to the Filipino companies — mostly to firms in the consumer sector — given Religare’s broad presence in the United Kingdom, Australia, Dubai, Hong Kong, Thailand and Indonesia.

“Our combined domestic platform makes available — to both existing and emerging mid cap enterprises — more options and greater flexibility as they seek cross border mergers and acquisitions opportunities and funding from the international capital markets,” Frondio said.

The partnership will offer financial advising and underwriting needs of mid cap firms from initial public offerings (IPO), follow on offerings, mergers and acquisitions, and private placements, among others.

Ryan SyCip, FSG Capital vice president, said after the investment banking venture, both parties are mulling over a future “brokerage firm” which is still under the partnership agreement.

Religare is an Asia-focused equities and investment banking firm, which has been in the Philippines for more than three years. It is presently working on the P32-billion IPO of Global Ferronickel Holdings Inc.


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