Care Rating to set up Mauritius JV to tap Africa
CARE Ratings getting listed on the National Stock Exchange in December 2012 (Source: corpcomindia.blogspot.com)
Mauritius, the investment platform linking Asia and Africa, is set to come into the spotlight yet again, as India-based ratings major, Credit Analysis and Research Ltd (CARE), homes it on the island for its African foray.
Over half the stake (51%) of the joint venture rating agency will be vested in CARE while the remaining stake will be held by African Development Bank, South African credit rating company Global Credit Rating (GCR) and others.
The Mauritius entity by CARE would be offering rating services for both large companies and small and medium businesses in Africa, to tap into the vast potential of the emerging markets in the African continent.
Meanwhile, CARE rating is also poised to enter the European market with a Singapore-based consortium of credit rating agencies of four other countries.
The consortium bring together rating agencies of Brazil, Malaysia, South Africa and Portugal to set up a Singapore-based entity called ARC Rating Holding, which in turn will set up ARC Rating Europe. The five partners will hold 20% percent stake each in the Singapore entity, ARC Rating Holding, which in turn will fully own ARC Rating Europe. The European entity will only provide rating services to large companies.
Once its expansion plans are implemented, CARE hopes to serve both Indian and overseas corporate clients in Europe and the African countries with offices in Lisbon, London and Mauritius. The Indian ratings major hopes to provide Indian companies an alternative to foreign credit rating agencies which otherwise enjoy a monopoly.
In December 2012, CARE raised INR 5,400 million (Rs 2,631 million) in an initial public offer (IPO) that was over-subscribed nearly 41 times. The IPO received overwhelming response from institutional buyers as CARE enjoys a high net worth with no debt on a consolidated basis.
CARE is India’s second largest credit rating agency by revenue. From April 1993 to March 2013, CARE Ratings completed over 23,263 rating assignments aggregating about INR 48,250,000 million (Rs 23,723,030 million).
CARE Ratings commenced operations in April 1993 and over nearly two decades, it has established itself as the second-largest credit rating agency in India by revenue. With a rating volume of debt of around INR 45,901 billion (Rs 22,367) as on December 31, 2012, CARE Ratings has won unparalleled investor confidence. CARE Ratings has also emerged as the leading agency for covering many rating segments like that for banks, sub-sovereigns and IPO grading.
With majority shareholding by leading domestic banks and financial institutions in India, CARE’s intrinsic strengths have also attracted many other investors.
CARE’s registered office and head office is located in Mumbai. In addition, CARE has regional offices at Ahmedabad, Bangalore, Chennai, Hyderabad, Jaipur, Kolkata, New Delhi, Pune and international operation in Male in the Republic of Maldives.
Source: Company Website