South African banking group Absa and New York-based Ecoban Finance Limited LLC have established a working agreement to develop Absa’s Structured International Trade and Commodity Finance business in selected emerging market countries. Initially, the co-operation will focus primarily on Latin America.
The working agreement with Ecoban is in line with Absa’s intent to increase the group’s foreign currency income streams, Absa said on Monday. Following its successful expansion into Africa and the conclusion of several significant deals in the region, it was decided to leverage the experience gained in the African trade and commodity market in other emerging markets, it said.
As a result of this working agreement, three officers from Ecoban have joined Absa in New York as employees to market and structure business opportunities. Ecoban’s representative offices in Sao Paulo and Mexico City will also facilitate the development of local deals and relationships, for structured trade and commodity finance.
“This working agreement with Ecoban allows Absa to broaden its reach in the structured trade and commodity finance markets using techniques and expertise, which we have successfully developed in the African markets, to the vast and exciting regions of the world which we are now targeting”, says Absa Group Deputy Chief Executive Rupert Pardoe. – I-Net Bridge