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☆ Ambani’s finance listing will measure disruption
▼ + stars: | 2023-05-11 | by ( Shritama Bose | ) www.reuters.com time to read: +3 min

Back in 2019 the boss of $200 billion Reliance Industries (RELI.NS) had pledged to spin out its giant retail and digital units. He has since lured big strategic and financial investors including Meta (META.O), Alphabet’s (GOOGL.O) Google and KKR (KKR.N)into those businesses. Jio Financial could be listed as soon as September. The entity will be renamed Jio Financial Services. Jio Financial will list as soon as September, a person familiar with the situation told Breakingviews.

LONDON, May 9 (Reuters) - Ecuador sealed the world's largest "debt-for-nature" swap on record on Tuesday, selling a new "blue bond" that will funnel at least $12 million a year into conservation of the Galapagos Islands, one of the world's most precious ecosystems. Tuesday's $656 million "Galapagos Bond," as it has been dubbed, will run until 2041 and gave investors that bought it a 5.645% "coupon" or interest rate, its bankers said. Ecuador sovereign bonds currently yield from 17% to 26%, but the new bond has an $85 million 'credit guarantee' from the Inter-American Development Bank and $656 million of political risk insurance from the U.S. International Development Finance Corp (DFC), effectively making it less risky. The driver has been the remote Galapagos Islands, some 600 miles (970 km) off Ecuador's mainland coast, that inspired Charles Darwin's Theory of Evolution. Scott Nathan, the chief executive of DFC, said people needed to "stay tuned" for similar deals in other countries and the Galapagos deal had been a long time coming.

☆ Financials bounce back from Friday's slide to lift Indian shares
▼ + stars: | 2023-05-08 | by ( Bharath Rajeswaran | ) www.reuters.com time to read: +2 min

The Nifty 50 (.NSEI) was up 0.81% at 18,215.75 as of 10:04 a.m. IST, while the S&P BSE Sensex (.BSESN) rose 0.87%. Nifty Bank (.NSEBANK) and Nifty Private Bank (.NIFPVTBANK) also gained over 1%. On Monday, IndusInd Bank Ltd (INBK.NS) rose nearly 5% and was the top Nifty 50 gainer. Analysts expect the Nifty 50 to witness consolidation in the near-term with resistance seen near 18,200 levels. read more($1 = 81.7330 Indian rupees)Reporting by Bharath Rajeswaran in Bengaluru; Editing by Sonia CheemaOur Standards: The Thomson Reuters Trust Principles.

☆ India's HDFC beats Q4 profit estimates on home loan demand
▼ + stars: | 2023-05-04 | by ( ) www.reuters.com time to read: +2 min

HDFC said profit after tax rose to 44.26 billion rupees ($541.09 million) for the three months ended March 31, from 37 billion rupees a year earlier. Analysts, on average, had expected profit after tax of 38.86 billion rupees, according to Refinitiv IBES data. The lender said it provided individual loans worth 93.40 billion rupees during the quarter, compared with 83.67 billion rupees a year earlier. HDFC is on track to merge with India's largest private lender HDFC Bank Ltd (HDBK.NS). The RBI in April allowed HDFC and HDFC Bank selective regulatory relief in order to smooth out the merger between the two entities.

☆ HDFC Bank to open more than 675 branches in semi-urban, rural areas in fiscal year 2024, bank official says
▼ + stars: | 2023-05-04 | by ( Siddhi Nayak | ) www.reuters.com time to read: +1 min

MUMBAI, May 4 (Reuters) - HDFC Bank (HDBK.NS), India's largest private lender, is planning to open more than 675 branches in the semi-urban and rural geographies across the country in 2023-24, a senior bank official said on Thursday. The move is part of the lender's new programme targeting customers in semi-urban and rural areas, helping the bank meet some of its Priority Sector Lending (PSL) targets. PSL requirements, which include lending to weaker segments of the economy, are linked to an organisation's loan book. Of this, around 52% of the bank's branches are in the semi-urban and rural areas. Going forward, HDFC Bank aims to double business in semi-urban and rural areas - both by assets and liabilities - in the next two-to-three years, Vohra said.

☆ India's HDFC is in fine shape for its big deal
▼ + stars: | 2023-04-17 | by ( ) www.reuters.com time to read: +2 min

HDFC Bank’s (HDBK.NS) net interest income rose 20% year-on-year in the three months to March. The $116 billion financier’s mix of deposits points to some niggles. As interest rates rise, savers tend to move idle funds from low-yielding checking accounts to fixed deposits, where money is locked up for a specific period against juicier interest rates. For now, the hotly watched net interest margin, unchanged at 4.3% for the last nine months, is holding up. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias.

JOHANNESBURG, March 27 (Reuters) - Multilateral development banks (MDBs) reluctant to offer debt relief need to shoulder an "equitable burden" in sovereign debt restructurings, a People's Bank of China official said on Monday. But with countries such as Zambia, Sri Lanka and Ghana having defaulted, China has faced criticism for holding up the debt restructuring processes. Jin also said that removing investments in "productive assets" from debt stock calculations in debt restructuring situations "should be encouraged". He acknowledged diverging opinions within China about debt restructuring, which he attributed partly to a lack of experience. "At most 15 years ago, in the multilateral forums China was always on the side of the borrowing countries," Jin said.

☆ Explainer: The business of water: no one-size-fits-all approach
▼ + stars: | 2023-03-22 | by ( Isla Binnie | ) www.reuters.com time to read: +5 min

PUBLIC-PRIVATE PARTNERSHIPSA group of experts established by the Dutch government is proposing "Just Water Partnerships" in which development finance institutions would invest alongside private firms to improve water systems in lower-income countries. One of those, the Calvert Global Water Fund, tracks the performance of an index of companies that "are offering products or services that are part of a solution to global water challenges," said portfolio manager Jade Huang. "There is no one-size-fits-all approach that can help to approach the many aspects of dealing with water challenges," Huang added. Lance Coogan, who developed that concept for water price indexing, describes it as "the volume-weighted average of the actual water transactions that are taking place". How can you have those things without having the water price?"

☆ UN warns 'vampiric overconsumption' is draining world's water
▼ + stars: | 2023-03-22 | by ( Isla Binnie | ) www.reuters.com time to read: +3 min

UNITED NATIONS, March 22 (Reuters) - The United Nations opened its first conference on water security in almost half a century on Wednesday with a plea to governments to better manage one of humanity's shared resources. A quarter of the world's population relies on unsafe drinking water while half lacks basic sanitation, the U.N. said. "We are draining humanity's lifeblood through vampiric overconsumption and unsustainable use, and evaporating it through global heating," said U.N. Secretary General Antonio Guterres. But Guterres said it must "result in a bold Water Action Agenda that gives our world's lifeblood the commitment it deserves". The United States quickly responded to Guterres' call.

☆ Water’s big moment risks getting lost in the weeds
▼ + stars: | 2023-03-20 | by ( Antony Currie | ) www.reuters.com time to read: +6 min

The latest is research published last Thursday by the Global Commission on the Economics of Water. The sum, though, is just $140 million, and the U.S. government’s International Development Finance Corporation is pouring in three-quarter of the proceeds. But there is a decent investment case for water without state or supranational support. Without them, water’s big moment risks getting lost in the weeds. Follow @AntonyMCurrie on TwitterCONTEXT NEWSThe United Nations 2023 Water Conference starts on March 22, World Water Day, in New York.

☆ IDB Invest, Banco de Bogota announce $230 mln sustainability bond
▼ + stars: | 2023-03-17 | by ( ) www.reuters.com time to read: +2 min

March 17 (Reuters) - The private investment arm of the Inter-American Development Bank's parent group on Friday announced alongside Colombia's Banco de Bogota the issue of a sustainability bond worth $230 million funding social and climate projects. Sustainability bonds are a form of debt instrument in which the proceeds are used to finance or re-finance a combination of both green and social projects. Banco de Bogota will use the funds to finance a portfolio of micro, small and medium-sized enterprises led and owned by women, it added, as well as low-income and priority housing. The Washington-based Inter-American Development Bank, along with its subsidiaries, is among the top providers of development finance in Latin America. IDB Invest said the funds generated by the new sustainability bond will also be used to pay for green buildings, renewable energy, energy efficiency projects, circular economy and sustainable agriculture.

☆ Treasury Secretary Yellen warns that losses tied to climate change could 'cascade through the financial system'
▼ + stars: | 2023-03-07 | by ( Emma Newburger | ) www.cnbc.com time to read: +1 min

U.S. Treasury Secretary Janet Yellen delivers remarks on "Next Steps in the Evolution of Development Finance" at a Center for Strategic and International Studies (CSIS) in Washington, U.S., February 9, 2023. \Treasury Secretary Janet Yellen on Tuesday warned that climate change is already taking a significant economic toll and could cause extensive losses to the U.S. financial system in the coming years. Yellen made the remarks during the first meeting with the Climate-related Financial Risk Advisory Committee (CFRAC), an advisory board that was set up last year by the Financial Stability Oversight Council in an effort to bolster U.S. action to minimize climate risk to the economy. "As climate change intensifies, natural disasters and warming temperatures can lead to declines in asset values that could cascade through the financial system," she said during the meeting. "A delayed and disorderly transition to a net-zero economy can lead to shocks to the financial system as well."

LONDON, March 6 (Reuters) - Two former JP Morgan credit bankers on Monday launched a new impact investment advisory firm focused on emerging market infrastructure, with a minority stake by British insurer Legal & General's (LGEN.L) alternative investments arm. The firm, ImpactA Global, aims to help address the World Bank's estimated need for $1 trillion in annual investment in emerging market infrastructure to meet development goals. Da Costa Mendes, a former JPMorgan executive director, shares the top job at ImpactA with co-founder Victoria Miles, who had served as a managing director of the Wall Street firm. ImpactA aims to bring in investors such as development finance institutions, export credit agencies and institutional asset managers to provide debt financing to these projects. ImpactA is among the very few investment firms focused solely on emerging market infrastructure debt, with a global rather than regional focus, she added.

☆ New French fund with 87.5 mln euros targets African solar development
▼ + stars: | 2023-02-24 | by ( ) www.reuters.com time to read: +2 min

PARIS, Feb 24 (Reuters) - A new investment fund with 87.5 million euros ($92.63 million) will finance solar power production across Africa, with a focus on West and Central Africa, French fund manager RGREEN INVEST and investment adviser ECHOSYS INVEST said on Friday. The AFRIGREEEN Debt Impact Fund's first closing will finance on- and off-grid solar power plants for small- and medium-sized commercial and industrial consumers across the continent, the statement said. The groups are looking to have a portfolio of twenty to thirty investments, with aim of meeting long-term debt financing needs of between 10 and 15 million euros, with an average of around 5 million euros over eight to ten years, the statement said. RGREEN INVEST and ECHOSYS INVEST said that the first closing included commitments from the European Investment Bank (EIB) and the International Finance Corporation (IFC). The group is aiming to raise a total of 100 million euros from development finance institutions and private investors.

☆ Two charged with insider trading in Kodak before COVID loan announcement
▼ + stars: | 2023-02-23 | by ( Jonathan Stempel | ) www.reuters.com time to read: +2 min

The defendants then traded in Kodak stock, resulting in profits of more than $500,000 for Andrew Stiles and more than $700,000 for Gray Stiles, the indictment said. One day before the proposed loan was announced, Andrew Stiles texted his cousin "tmw," prompting Gray Stiles to respond "hot damn," the indictment said. Andrew Stiles was arrested at his Charleston, South Carolina home, and Gray Stiles was arrested in Virginia. Ron Fischetti, a lawyer for Andrew Stiles, said his client's arrest came "out of nowhere" following a year of communications with prosecutors. A lawyer for Gray Stiles did not immediately respond to requests for comment.

☆ U.S. House panel to hold hearing on policy toward China
▼ + stars: | 2023-02-21 | by ( Karen Freifeld | ) www.reuters.com time to read: +1 min

Feb 21 (Reuters) - The House Foreign Affairs Committee will hold a hearing next Tuesday with top officials on China policy to identify gaps in pursuing what it called a "more holistic approach" to countering aggression by the Chinese Communist Party. The hearing, announced by the panel's chair, Representative Michael McCaul, a Republican, is called, "Combating the Generational Challenge of CCP Aggression." Alan Estevez, the U.S. Commerce Department's under secretary for industry and security, who oversees restrictions on tech exports to China, is among the witnesses. McCaul has been pressing Estevez on the need to ensure China is not transferring U.S.-origin technology to state sponsors of terrorism, and has called for tighter restrictions on exports to blacklisted companies like China's Huawei, which are viewed as a threat to U.S. national security. Reporting by Karen Freifeld; Editing by David GregorioOur Standards: The Thomson Reuters Trust Principles.

☆ India's HDFC raises $3 bln in largest-ever local bond issue-bankers
▼ + stars: | 2023-02-16 | by ( Dharamraj Lalit Dhutia | ) www.reuters.com time to read: +3 min

MUMBAI, Feb 16 (Reuters) - India's Housing Development Finance Corp (HDFC.NS) raised its target of 250 billion rupees ($3.03 billion) in the country's largest privately placed corporate bond issue on Thursday, merchant bankers said. The country's largest housing financier, soon to be merged with private lender HDFC Bank, sold 10-year bonds at a coupon of 7.97% coupon. The issue received 92 bids worth 278.63 billion rupees, of which the company retained 55 bids worth 250 billion rupees, HDFC said in an exchange notice. The NBFC has now raised an aggregate of 784.14 billion rupees through bond issuance in this financial year, the highest by any company. Axis Bank, ICICI Bank, HDFC Bank and ICICI Securities Primary Dealership are the arrangers.

☆ Indian lender HDFC's biggest-ever bond issue to see strong demand - bankers
▼ + stars: | 2023-02-15 | by ( Dharamraj Lalit Dhutia | ) www.reuters.com time to read: +2 min

HDFC aims to raise at least 50 billion rupees ($603.4 million) through the sale of 10-year bonds on Thursday, with an option to retain an additional 200 billion rupees. If the company garners full the quantum, this would also be the biggest-ever privately placed debt issue by an Indian company. Axis Bank, ICICI Bank, HDFC Bank and ICICI Securities Primary Dealership are the arrangers for the bond issue. The company's fundraising via private placement stood below 250 billion rupees in 2013-14. HDFC is raising funds as it would help them meet capital requirements after the upcoming merger with HDFC Bank, bankers said.

MUMBAI, Feb 15 (Reuters) - The anticipation of Housing Development Finance Corp (HDFC.NS), India's largest mortgage lender, executing an interest-rate hedge once it completes its mega bond sale this week, is driving longer-duration bond yields lower, traders said on Wednesday. "HDFC is likely to do the trade on or post Friday, once it receives the money from its bond issuance," one of the bankers said. Under the trade, the banks will pay HDFC the yield on a government bond and in return receive the benchmark overnight rate plus a markup. The price risk on the bond is borne by HDFC and hence the name total return swap (TRS). And when the banks execute these swaps, there will likely be bunched-up demand for these bonds, which will pressure yields, traders said.

"I don't want to be having this same conversation about access to capital in 20 years," Johnson said. "I don't want my children, when they get ready to start a business, to be trying to figure out access to capital." Jill Johnson CEO of the Institute for Entrepreneurial LeadershipIn 2020, Johnson designed a program called the "Making of Black Angels" to educate prospective angel investors and connect them with Black business owners to help startups obtain critical funding. "Yet, we have certain groups that have been historically excluded from this access — and we need to change that. Becoming an angel investorTo make early-stage investments as an angel investor, you must be an "accredited investor," as outlined by the U.S. Securities and Exchange Commission.

☆ Yellen wants bolder World Bank steps on climate change, global issues
▼ + stars: | 2023-02-09 | by ( ) www.reuters.com time to read: +4 min

[1/2] U.S. Treasury Secretary Janet Yellen arrives to a news conference during the Annual Meetings of the International Monetary Fund and World Bank in Washington, U.S., October 14, 2022. Yellen said countries urgently needed the World Bank and other multilateral development banks to evolve, given declining progress addressing global poverty that began even before the COVID-19 pandemic. "In today’s world, sustained progress on poverty alleviation and economic development is simply not possible without addressing the global challenges that face us all." She said Treasury was asking the Bank to identify concessional resources - low or zero-interest loans - to help countries tackle global challenges. The bank also needed new diagnostic tools to identify global challenges affecting development, and it needs to boost its financial capacity, she said.

☆ India's largest mortgage lender HDFC misses Q3 profit view on higher funding costs
▼ + stars: | 2023-02-02 | by ( ) www.reuters.com time to read: +1 min

BENGALURU, Feb 2 (Reuters) - Housing Development Finance Corp (HDFC.NS) (HDFC), India's largest mortgage lender, reported a 13.2% rise in third-quarter profit on Thursday, missing estimates, as higher funding costs took the shine off strong housing loan growth. Increased funding costs, however, have compressed net interest margins and net interest income. Profit rose to 36.91 billion rupees ($450.67 million) for the three months ended Dec. 31, compared to 32.61 billion rupees a year earlier, the company said in an exchange filing. Analysts, on average, had expected a profit of 37.81 billion rupees, according to Refinitiv IBES data. Total expenses rose 37.3% to 106.35 billion rupees, mainly driven by higher finance costs that surged 41%.

South Africa has been struggling for years to overhaul its state-power company which is plagued by corruption and mismanagement and reeling under a 400 billion rand ($23.3 billion) debt pile. Finance Minister Enoch Godongwana told Reuters last week he was "sharpening his pencil" to provide details, so far scarce, for taking on between one- and two-thirds of Eskom's debt in his Feb. 22 budget presentation. Eskom's debt pile is not just big, it is also complex. Another 15% is international bonds, held by global asset managers such as PIMCO, BlackRock and Fidelity, according to recent filings. Eskom's international bonds could rally if the government takes on two-thirds of the debt, Wolman said, while limiting that to one third or carrying out the debt transfer over a long period of time could be negative.

☆ Creative green finance can go a long way in 2023
▼ + stars: | 2023-01-23 | by ( Hugo Dixon | ) www.reuters.com time to read: +7 min

PARIS, Jan 23 (Reuters Breakingviews) - Rich democracies are increasingly keen to help the Global South fight climate change. Though they will struggle to write big cheques, there are ways to make a little cash go a long way. The good news is rich countries have ways to get money flowing without dipping much into their own pockets. One plan is for multilateral development banks (MDBs) to use their balance sheets more aggressively to fight climate change. Rich countries should therefore put more capital into those MDBs that show the most enthusiasm for the task.

☆ India New Issue HDFC to issue 10-year bonds - traders
▼ + stars: | 2023-01-23 | by ( ) www.reuters.com time to read: +1 min

The housing finance company has invited coupon and commitment bids from bankers and investors on Tuesday, they added. The issue will also have a greenshoe option to retain an additional 20 billion rupees and will close for subscription later this week. The bonds are rated AAA by CRISIL and will have a put option at the end of the third year. Last week, Reuters had reported that the housing financier plans to tap the bond market after a gap of two months. In November, HDFC raised 19 billion rupees through bonds maturing in 10 years at an annual coupon of 7.79%.

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