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Tata International concludes a securitization transaction for its African Subsidiaries

GCC, July 13th, 2020
ADGM acts as a gateway to benefit African businesses

Tata International Limited (TIL) has completed the first tranche of a receivables securitization transaction for USD 48 million in order to support their business growth in Africa. TIL packaged their receivables from eight African countries and successfully raised funding against them. The countries include Kenya, Uganda, Tanzania, Ghana, Nigeria, Senegal, Ivory Coast and Zambia.

The receivables were securitized through an entity set up in the Abu Dhabi Global Market (ADGM) by Al Tamimi & Company. The Dubai headquartered Alpen Capital acted as the sole financial advisor to the transaction.

TIL is the primary trading arm of the Tata Group and has a substantial presence in Africa with operations in over 19 countries in the continent. In addition to the trading business, TIL is also a distributor for Tata Motors and Daewoo commercial vehicles, Jaguar Land Rover automobiles and John Deere construction and agricultural equipment across the African continent.

“Africa is a key market for TIL’s commercial vehicles business. TIL provides support to local entrepreneurs, farmers and SMEs to grow their business. This transaction allows TIL to increase their market share in Africa while supporting economic development at a local level. I would like to thank Alpen Capital for conceptualizing, structuring and concluding this sophisticated transaction.” said Noel Tata, Managing Director, Tata International Limited.

“ADGM is an innovative, progressive and responsive international financial center transforming the business and finance landscape and is uniquely positioned as a gateway to benefit African businesses and transactions. We continue to introduce and launch initiatives that benefit businesses across the region and beyond as part of our efforts to reinforce our position as a leading International Financial Centre and to contribute to the global financial and business landscape.” said Juma Al Hameli, Senior Executive Director, Strategy and Business Development.

“We value our relationship with TIL and are extremely proud to support them in their funding requirements. The UAE is emerging as a key financial center for the India-Africa corridor. In partnership with Tata International, Alpen is currently working on a number of initiatives including development finance in African countries as well as pan-African leasing structures. We are happy to partner with financial centers in the UAE to successfully structure transactions of this nature.” says Rohit Walia, Executive Chairman, Alpen Capital (ME) Limited.

Established in 1962, TIL has operations across five key business verticals: Metals Trading, Minerals Trading, Distribution, Leather & Leather Products and Agricultural-based Products. TIL has a network of 49 offices spanning over 39 countries in Africa, Asia, the Americas and Europe supported by 10,000+ employee base.