Jun 2009 Financial News

ANSA Merchant Bank targets capital markets

Jun 22, 2009

ANSA Merchant Bank plans a major boost of its profile in the regional capital markets as part of its strategy to diversify revenues and gear up its investment banking business. The merchant bank, which has more than $6 billion under asset management and executed more than half a billion dollars in transactions in the last quarter, is exploring options to increase its involvement in the sector, while improving the competitiveness of its deals, said executive director Gregory Hill.

“A few months ago, many of these investment banking transactions would have been dominated by the major banks, especially those with roots in the more developed markets, but with the current global scenario, there is an opportunity for local talent and drive, to seize these opportunities, especially while others remain distracted,” he said. Hill said in an interview that even though those high profile government deals get a lot of attention, the bank is also interested in smaller funding projects, particularly in support of the local manufacturing sector.

“Many manufacturers are initially surprised about the options available to them for funding production and making their business more globally competitive in terms of pricing and quality. A lease engagement with the bank can give managers the opportunity to write off the entire principal and interest paid on the facility during the lease period. “This brings after tax financing costs down to close to one per cent. In addition to equipment purchases, manufacturers can claim the initial capital write off of 75 per cent of the initial cost, which is a tremendous tax saving,” Hill said.

He said the options for those already invested are still wide, since additional cash can be freed up for market research to grow demand through a sale and lease back structure. “Acquiring these tax write offs provides new opportunities to lower borrowing costs and additional cash flows to invest in innovation to change your market space and create new possibilities.”

“At a time when world giants are faltering, now is the time to take advantage of falling equipment costs, developing niche markets in a cost-effective way, and identify new opportunities for growing your business.” “Essentially, company assets and resources must be re-organised in a new business model to provide a new approach that would re-invent the market space, raise capital and acquire ammunition to reorganise business lines for battle in this new environment,” Hill said.

Article by: Peter D. Neptune
Source: Trinidad Guardian
http://guardian.co.tt/business/business/2009/06/22/ansa-merchant-bank-targets-capital-markets
22-06-09