Bank of Baroda (BoB), the only Indian bank licenced by the UAE Central Bank, and the Ras Al Khaimah Investment Authority (Rakia) have signed a Memorandum of Understanding to finance projects in the Rakia industrial and free zones.
The deal was signed by Dr Khatter Massaad, Chief Executive Officer of Rakia, and Ashok K Gupta, Chief Executive for GCC Operations, Bank of Baroda.
As per the memorandum, Rakia will refer all projects being set up in its industrial and free zones to Bank of Baroda, which will consider financing them on a priority basis. If the projects are found suitable for financing, BoB will extend full financial and related support to the project.
For projects of very large size, the bank will underwrite and arrange the syndicated loans by approaching other banks. In addition to project finance, the companies setting up ventures will have access to facilities from BoB, such as working capital limits, non-fund based limits, fixed deposits, remittance services, trade finance related services and treasury services, among others.
The memorandum also provides for BoB to join Rakia in road shows in different parts of the world, where the bank has a presence, as well as in meeting various corporate entities to attract investments in the industrial and free zones.
Gupta said with the signing of the deal, BoB will be able to assist in setting up projects from the conceptual stage itself. He said the bank has recently started its Syndication Centre in Dubai, which will cater to requirements such as arranging and underwriting syndicated loans, arranging credit and bonds, financing mergers and acquisitions or takeovers and project financing.
The Syndication Centre will also offer advisory services to investors who plan to set up projects in the UAE or India and will extend advisory services for investment banking-related activities.
BoB is leading Indian Bank with a network of more than 2,800 branches in India and 66 overseas offices in 24 countries. In the UAE, it is the only Indian Bank offering full-fledged banking services. It has six branches – in Bur Dubai, Deira, Sharjah, Abu Dhabi, Al Ain and Ras Al Khaimah.
Rakia is owned by the Government of Ras Al Khaimah. It promotes and facilitates setting up of industries and real estate and tourism plans in the emirate.
BoB signs agreement with RAK to finance projects