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Business Standard
22-05-2025
- Business
- Business Standard
Adani Ports taps DBS for $150 mn capex loan, first global bank deal since probe
Adani Ports and Special Economic Zone Ltd. (APSEZ) has reportedly secured approximately $150 million through a bilateral loan arrangement with Singapore-based DBS Group Holdings Ltd., according to a Bloomberg report. The four-year loan is aimed at funding the company's capital expenditure plans, it said. This marks the conglomerate's first bilateral loan from a global financial institution since the US Department of Justice filed bribery-related charges against it in November. The loan is seen as a signal of gradually improving lender sentiment toward the group, whose portfolio spans ports, logistics, energy and infrastructure. Loan pricing and terms reflect easing risk perception The facility is reportedly priced around 200 basis points above the Secured Overnight Financing Rate (SOFR). Including hedging costs, the total cost of the loan is estimated at about 5.5 per cent, said one of the individuals. While DBS declined to comment on the development, a representative for the Adani Group also did not provide an immediate response. Adani re-engages global investors with new bond and loan plans Just last month, the Adani Group raised roughly $750 million via an offshore private placement bond issuance to finance the acquisition of a construction company. Asset management giant BlackRock Inc. reportedly took up about one-third of the issue. In parallel, Adani is currently in discussions with several international banks, including Barclays Plc, First Abu Dhabi Bank PJSC, and Standard Chartered Bank Plc, for a potential $750 million loan to support its airport business. Meanwhile, Adani Group representatives have met with officials from the US administration to explore the possibility of having the bribery-related charges dropped, Bloomberg reported earlier this month. Earlier this month, APSEZ reported a 47.8 per cent year-on-year rise in net profit attributable to equity shareholders for the fourth quarter of FY25, fuelled by a steady increase in cargo throughput. The company recorded a quarterly profit of ₹3,014.22 crore, surpassing Bloomberg's analyst consensus of ₹2,662.1 crore. Total cargo volumes during the period climbed 8 per cent from the previous year to reach 117.9 million metric tonnes, driven primarily by robust growth in container traffic. Operational revenue for the quarter jumped 23.1 per cent year-on-year to ₹8,488.44 crore, outpacing the projected ₹8,094.4 crore. Meanwhile, total expenses for the quarter stood at ₹5,382.13 crore, marking a 20.93 per cent rise compared to the same period last year.
Mint
16-05-2025
- Business
- Mint
Lutnick-Built FMX to Start Treasury Futures Trade in Blow to CME
(Bloomberg) -- An exchange founded by Commerce Secretary Howard Lutnick is set to start the long-awaited trading of US Treasury futures next week in a blow to CME Group Inc., which dominates that market. FMX Futures Exchange will launch its US Treasury futures as soon as Monday, according to people familiar with the matter, who asked not to be named discussing private matters. Futures brokers spent Friday testing trades on the exchange, one of the people said. Trading in the contract was intended to start in late March, but there were delays because of operational issues with clearing and tariff-induced volatility. Lutnick spun FMX out of inter-dealer broking giant BGC Group Inc. in April last year. The move comes after CME pulled out the stops to thwart the launch of the rival contract, citing risks of FMX clearing with London-based LCH Ltd, part of London Stock Exchange Group PLC. CME Chief Executive Officer Terry Duffy brought his concerns to everyone from former Treasury Secretary Janet Yellen to the heads of America's major financial regulators. 'We are delighted to be working in close partnership with FMX to bring greater competition and innovation to the trading and clearing of US Treasury Futures,' a spokesperson for LCH told Bloomberg. Deliberations are ongoing and details of the launch could change, the people said. FMX and BGC Group declined to comment. Last year, FMX began trading three-month futures on the Secured Overnight Financing Rate. The contracts have an open interest of over 10,000, according to data from Bloomberg. FMX already competes with CME as a venue for trading currencies and US Treasuries. Treasury futures are integral part of the US Treasury basis trade, which hedge funds use to arbitrage price differences between the value of Treasuries and their derivatives. Lutnick's BGC Group created FMX in 2018 and spun it out last year with equity capital from a consortium of banks and proprietary trading firms. Bank of America Corp., Barclays Plc, Citigroup Inc., Goldman Sachs Group Inc. and JPMorgan Chase & Co. invested in FMX, giving the business a valuation of $667 million. More stories like this are available on
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Business Standard
15-05-2025
- Business
- Business Standard
RBI pushes lenders to revive funding market vital for monetary policy
A dwindling borrowing market used mainly by Indian banks is showing signs of life as authorities champion its usage to lenders, according to people familiar with the matter. Average daily volumes in the interbank call market have climbed to their highest in about five years this month, despite a plethora of often more attractive alternatives. Officials at the Reserve Bank of India have been asking dealers at banks to use the facility to keep its relevance to monetary policy alive, the people said, who asked not to be named, citing private discussions. While overall money-market turnover has risen to an average $70 billion a day, interbank trades account for just 2 per cent of that, down from 20 per cent a decade ago. That's as non-bank players like mutual funds and insurers use other venues for funding, contributing to the market's waning significance. The call money market is a vital component of India's financial plumbing, allowing the central bank to gauge how well its interest rate changes are being reflected in the broader economy. Shrinking volumes threaten to disrupt this process, weakening the link between policy rates and real-world borrowing costs, and by extension, the pricing of key financial derivatives. 'The weighted average call rate is the best operational target for monetary policy, despite dwindled share of call market volumes in overnight markets,' said Abhishek Upadhyay, an economist at ICICI Securities Primary Dealership. 'It represents the balance between demand and supply of bank reserves that is controlled by the RBI.' An email sent to the RBI seeking comment on the matter wasn't immediately answered. Daily average volumes in the call market are about Rs 16,490 crore ($1.9 billion) so far this month, Bloomberg-compiled data show. That's the highest in more than five years. Volumes reached 200 billion rupees on May 5, the highest since March 2020. To be sure, reviving the market comes at a cost: unsecured borrowing is typically more expensive and exposes lenders to credit risk. The trend away from the bank-to-bank call market isn't unique to India. Since the 2008 financial crisis and the stricter banking rules that followed, several countries embraced secured markets. For instance, the US replaced the scandal-hit Libor with the Secured Overnight Financing Rate. In India, the transition comes as players like mutual funds and insurers — whose assets have ballooned since the pandemic — are borrowing in the secured funding markets such as repo. The waning impact of the interbank rate has reduced the effectiveness of its link to the policy rate, making it harder to price loans and other financial products. This has spurred the central bank to push for a new benchmark — the Secured Overnight Rupee Rate (SORR) — which may eventually replace the Mumbai Interbank Outright Rate for pricing derivatives. The transition will depend on liquidity building up in the products tied to the new rate, according to the RBI. About 86 per cent of India's Rs 100 trillion outstanding in interest interest rate derivatives are overnight indexed swaps, tied to MIBOR, according to the central bank. The SORR, based on secured overnight repo trades that account for 98 per cent of activity, offers greater reliability and transparency.
Cision Canada
28-04-2025
- Business
- Cision Canada
Propel announces upsize to CreditFresh credit facility, refinancing of MoneyKey credit facility and a lower cost of capital
TORONTO, April 28, 2025 /CNW/ - Propel Holdings Inc. (" Propel") (TSX: PRL), the fintech facilitating access to credit for underserved consumers, announced an amendment to and upsize of $70 million to $400 million to its existing syndicated credit facility for the CreditFresh line of business (the " CreditFresh credit facility"). Furthermore, Propel announced a refinancing of its credit facility for the MoneyKey line of business (the " MoneyKey credit facility"). All amounts are expressed in U.S. dollars. CreditFresh Credit Facility With the amendment, the CreditFresh credit facility will bear interest at an interest rate equal to the Secured Overnight Financing Rate (" SOFR") plus approximately 620 basis points per annum. This is a reduction from the prior interest rate of SOFR plus 750 basis points per annum. With the upsize, the total commitment for the CreditFresh credit facility is $400 million. The CreditFresh credit facility continues to be led by Mesirow Alternative Credit (formerly Bastion Management) and affiliates thereof and Hudson Cove Capital Management, LLC and affiliates thereof (" Hudson Cove"). The syndicate also includes the addition of a large FDIC insured bank. MoneyKey Credit Facility Under the terms of the new credit agreement, the MoneyKey credit facility will bear interest at an interest rate equal to SOFR plus approximately 425 basis points per annum. This is a reduction from the prior MoneyKey credit facility interest rate of SOFR plus 1020 basis points per annum. The MoneyKey credit facility total commitment is $15 million and will be solely led by Veritex Community Bank (" Veritex"). As reported in its Q4 and Full Year 2024 results, Propel's US loan portfolio, including CreditFresh and MoneyKey, continues to experience strong growth driven by the expansion of its bank partnerships, the delivery of best-in-class products and the growing demand from the underserved market in the US. With the combined amendment and refinancing, Propel's cost of capital will be lowered by approximately 150 basis points per annum 1. "Looking ahead, we see opportunity. The amendment and refinancing allow us to realize a reduction in our cost of capital and increased liquidity to achieve our growth targets. Admist the economic uncertainty, the continued support from large, institutional lenders, such as Veritex, Mesirow Alternative Credit and Hudson Cove, and the addition of a new large bank to the syndicate, is a testament to Propel's demonstrated performance and growth outlook. Propel delivered record performance in 2024, and there is still so much growth ahead of us on our journey to become a global leader in providing credit for underserved consumers," said Clive Kinross, Propel's Chief Executive Officer. About Propel Propel Holdings (TSX: PRL) the fintech building a new world of financial opportunity for consumers, partners, and investors. Propel's operating brands — Fora Credit, CreditFresh, MoneyKey and QuidMarket — and its Lending-as-a-Service product line facilitate access to credit for consumers underserved by traditional financial institutions. Through its AI-powered platform, Propel evaluates customers in a more comprehensive way than traditional credit scores can. The result is better products and an expanded credit market for consumers while creating sustainable, profitable growth for Propel. The revolutionary fintech platform has already helped consumers access over one million loans and lines of credit and over two billion dollars in credit. At Propel, we are here to change the way customers, partners and investors succeed together. Learn more at Forward-Looking Information Certain information contained in this press release may constitute forward-looking information under applicable securities laws, including statements related to our ability to reduce our cost of capital, increase liquidity and achieve our growth targets and other statements that are not historical facts. Often but not always, forward-looking statements can be identified by the use of forward-looking terminology such as "may", "will", "expect", "believe", "estimate", "plan", "could", "should", "would", "outlook", "forecast", "anticipate", "foresee", "continue" or the negative of these terms or variations of them or similar terminology. This information is based on management's reasonable assumptions and beliefs in light of the information currently available to us and are made as of the date of this press release. Many factors could cause our actual results, level of activity, performance or achievements or future events or developments to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, the factors discussed in the "Risk Factors" section of the Company's annual information form dated March 12, 2025 for the year ended December 31, 2024 (the " AIF"). A copy of the AIF and the Company's other publicly filed documents can be accessed under the Company's profile on SEDAR+ at SOURCE Propel Holdings Inc.
Associated Press
28-04-2025
- Business
- Associated Press
Propel announces upsize to CreditFresh credit facility, refinancing of MoneyKey credit facility and a lower cost of capital
TORONTO, April 28, 2025 /CNW/ - Propel Holdings Inc. ('Propel') (TSX: PRL), the fintech facilitating access to credit for underserved consumers, announced an amendment to and upsize of $70 million to $400 million to its existing syndicated credit facility for the CreditFresh line of business (the 'CreditFresh credit facility'). Furthermore, Propel announced a refinancing of its credit facility for the MoneyKey line of business (the 'MoneyKey credit facility'). All amounts are expressed in U.S. dollars. CreditFresh Credit Facility With the amendment, the CreditFresh credit facility will bear interest at an interest rate equal to the Secured Overnight Financing Rate ('SOFR') plus approximately 620 basis points per annum. This is a reduction from the prior interest rate of SOFR plus 750 basis points per annum. With the upsize, the total commitment for the CreditFresh credit facility is $400 million. The CreditFresh credit facility continues to be led by Mesirow Alternative Credit (formerly Bastion Management) and affiliates thereof and Hudson Cove Capital Management, LLC and affiliates thereof ('Hudson Cove'). The syndicate also includes the addition of a large FDIC insured bank. MoneyKey Credit Facility Under the terms of the new credit agreement, the MoneyKey credit facility will bear interest at an interest rate equal to SOFR plus approximately 425 basis points per annum. This is a reduction from the prior MoneyKey credit facility interest rate of SOFR plus 1020 basis points per annum. The MoneyKey credit facility total commitment is $15 million and will be solely led by Veritex Community Bank ('Veritex'). Commentary As reported in its Q4 and Full Year 2024 results, Propel's US loan portfolio, including CreditFresh and MoneyKey, continues to experience strong growth driven by the expansion of its bank partnerships, the delivery of best-in-class products and the growing demand from the underserved market in the US. With the combined amendment and refinancing, Propel's cost of capital will be lowered by approximately 150 basis points per annum1. 'Looking ahead, we see opportunity. The amendment and refinancing allow us to realize a reduction in our cost of capital and increased liquidity to achieve our growth targets. Admist the economic uncertainty, the continued support from large, institutional lenders, such as Veritex, Mesirow Alternative Credit and Hudson Cove, and the addition of a new large bank to the syndicate, is a testament to Propel's demonstrated performance and growth outlook. Propel delivered record performance in 2024, and there is still so much growth ahead of us on our journey to become a global leader in providing credit for underserved consumers,' said Clive Kinross, Propel's Chief Executive Officer. About Propel Propel Holdings (TSX: PRL) the fintech building a new world of financial opportunity for consumers, partners, and investors. Propel's operating brands — Fora Credit, CreditFresh, MoneyKey and QuidMarket — and its Lending-as-a-Service product line facilitate access to credit for consumers underserved by traditional financial institutions. Through its AI-powered platform, Propel evaluates customers in a more comprehensive way than traditional credit scores can. The result is better products and an expanded credit market for consumers while creating sustainable, profitable growth for Propel. The revolutionary fintech platform has already helped consumers access over one million loans and lines of credit and over two billion dollars in credit. At Propel, we are here to change the way customers, partners and investors succeed together. Learn more at ( ) Forward-Looking Information Certain information contained in this press release may constitute forward-looking information under applicable securities laws, including statements related to our ability to reduce our cost of capital, increase liquidity and achieve our growth targets and other statements that are not historical facts. Often but not always, forward-looking statements can be identified by the use of forward-looking terminology such as 'may', 'will', 'expect', 'believe', 'estimate', 'plan', 'could', 'should', 'would', 'outlook', 'forecast', 'anticipate', 'foresee', 'continue' or the negative of these terms or variations of them or similar terminology. This information is based on management's reasonable assumptions and beliefs in light of the information currently available to us and are made as of the date of this press release. Many factors could cause our actual results, level of activity, performance or achievements or future events or developments to differ materially from those expressed or implied by the forward-looking statements, including, without limitation, the factors discussed in the 'Risk Factors' section of the Company's annual information form dated March 12, 2025 for the year ended December 31, 2024 (the 'AIF'). A copy of the AIF and the Company's other publicly filed documents can be accessed under the Company's profile on SEDAR+ at SOURCE Propel Holdings Inc.
