India Offers Increased Export Opportunity to UK After Brexit: Study

first_imgBritain’s “increased export opportunity” to India, if it is outside the European Union, will be $3.2 billion, according to the Standard Chartered Trade Performance Index, which was released on March 13.The United Kingdom’s current exports to India are worth $5.5 billion. The predicted figure for exports if Britain remains in the European Union is $9.1 billion, while it stands at $12.3 billion if the country is outside the EU, giving rise to an “increased export opportunity” of $3.2 billion, according to the analysis of Notional Post-Brexit UK Exports.The United Kingdom’s current export to China is worth $24 billion, and its increased export opportunity if it is outside the EU is $10.1 billion. The report said that like all G7 countries, the United Kingdom would significantly benefit from focusing on China, but it also faces a sizeable opportunity to capitalize on its current relations with India. According to the report, UK businesses missed projections by $4.6 billion with China and $3.6 billion with India.The Group of Seven (G7) is an informal bloc of industrialized democracies, consisting of Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States.The Standard Chartered Trade Performance Index reveals the size of G7 goods export opportunities in seven emerging markets — Bangladesh, China, Indonesia, India, Nigeria, Pakistan and Vietnam — termed the E7, representing a total of 49 exporting relationships.The E7 countries offer significant potential to become key G7 trading partners, the report said. Receiving about 10 per cent of all G7 private sector exports, “the E7 countries represent fast lanes to growth for G7 businesses seeking to drive export growth,” it added.“With membership of the G7 no longer being a passport to growth, the index reveals real growth opportunities. Every G7 nation has much to gain from accelerating their export performance in the seven economies we have identified as the Emerging Seven (E7),” Michael Vrontamitis, head of Trade for Europe and Americas, Standard Chartered, said in a statement.If the G7 economies reorient their trade strategy towards the E7, the size of the prize is an additional $162 billion annually, with an immediate 30 per cent gain, Vrontamitis added. “It is clear the E7 represent multi-billion dollar trading opportunities for G7 governments and businesses searching for export diversification and growth,” he said.The report showed that UK exports to the E7 could potentially increase by $16.9 billion to $64.9 billion when the country leaves the EU. “While the EU remains a critical trading partner, UK businesses could capitalize on export opportunities with all E7 countries,” said the report.In terms of total imports from the G7, India is second to China, representing 12 per cent of the total potential E7 imports from the G7. However, in actual performance, India is behind in meeting its predicted imports from every G7 country except Germany, said the report. Related ItemsBrexitExportUnited Kingdomlast_img read more

RBC Espresso Capital deal provides jolt for tech lending

first_img August 1, 20187:33 PM EDT Filed under News FP Street Join the conversation → Featured Stories Share this storyRBC, Espresso Capital deal provides jolt for tech lending Tumblr Pinterest Google+ LinkedIn Comment Facebook More advertisement Sponsored By: Twitter Barry Critchley In what is understood to be the first of its kind for both parties, two providers — one the country’s largest bank and the other a privately held fintech company that provides venture debt to technology companies — have teamed up to create a national “strategic partnership.”Royal Bank of Canada, believed to be the country’s largest technology banker and which typically provides first-lien secured debt, and Espresso Capital, which typically furnishes second-lien secured debt, are the two parties behind the partnership.That partnership, RBC said, “represents another way” for it to deliver “differentiated solutions that meet the needs of the Canadian technology sector.”RBC noted that technology companies “have a unique set of needs and we are continually looking to evolve our offerings for businesses in all stages of their growth journey.” In short, by combining capital and banking solutions with industry expertise, the hope is “to support even more Canadian technology entrepreneurs to scale and accelerate their growth.”Espresso, which has three Canadian offices, was not a random choice for RBC, which has had “a positive, long-standing working relationship” of many years with Espresso. “Our complementary strengths provide a strong value proposition for technology clients,” the bank said.Alkarim Jivraj, chief executive of Espresso Capital, which has financed about 230 technology companies since being formed in 2009, said the partnership will offer ”a truly differentiated lending solution for fast-growing companies.”The partnership, he added, will combine RBC’s “best-in-class lending and banking capability and global networks with Espresso’s true venture-debt capability.” The “integration” will “be super efficient” for companies seeking to match their debt needs with the stages of their development.“We benefit from the breadth and reach of their system and relationships, (which will) help broaden awareness of the value proposition that is venture debt,” noted Jivraj, adding that both parties will bring customers and lending capability. “The idea is that our teams will work together in a market-facing partnership,” even though there is no revenue sharing.Recently, Espresso broadened its lending to provide clients with loans equal to up to 24 months of recurring revenue. Previously, Espresso, which raises capital from high-net-worth individuals and lends it on, would lend up to 12 months of recurring revenue.Jivraj said the increase in the amounts being loaned was made “to better match the lending program with the value creation trajectory of some of our investee companies,” which are now “earning a better leverage because they are performing so well.”Jivraj termed the new expanded lending development “smarter lending,” rather than taking on more risk. “In our lending decisions, we always balance two things: How do we get the best lending solutions into the hands of our borrowers while not exposing our investors to undue risk,” a balance he says is helped by Espresso’s “data-driven approach.”“We are small and nimble” and not in the business of lending to own, he added.Accordingly, Espresso is selective as to which companies it provides venture debt, a category of capital that allows the founders to retain economic and strategic control over their company longer than if they were to fund with equity alone.Espresso has about $100 million in loans outstanding. On average, each loan, which is revolving and comes with a three-year term and an interest rate in the low to mid-teens, is about $2 million.RBC has some other irons in the fire. For instance, it has committed $100 million to fintech-focused venture funds and startups to further new technologies and pursue emerging trends. It has also been a founding partner for many incubator and accelerator programs and is a strong supporter of events that bring together ecosystem participants.Financial Postbcritchley@postmedia.com 0 Comments What you need to know about passing the family cottage to the next generation Email RBC, Espresso Capital deal provides jolt for tech lending The aim is ‘to support even more Canadian technology entrepreneurs to scale and accelerate their growth’ Reddit Recommended For YouMDA Awarded Canadian Government Contract to Deliver Search and Rescue Repeaters for SatellitesSingapore-based company is buying the biggest shipping container terminal in eastern CanadaInagene Diagnostics Inc. Announces New CEOPRECIOUS-Gold drops as bets fade for big Fed rate cut fade; eyes on trade talks’John Wick 3′ dethrones ‘Avengers: Endgame’ with $57 million ← Previous Next →last_img read more