British industrialist Sanjeev Gupta's GFG Alliance has completed the acquisition of Diamond Bank UK.

The bank, which will provide letter of credit (L/C) discounting alongside a raft of international trade finance offerings, will be renamed the Commonwealth Trade Bank (CTB).

Post-Brexit opportunities

Gupta says the acquisition of Diamond Bank UK, which was previously the UK subsidiary of Diamond Bank of Nigeria, is part of a strategy to help British businesses trade internationally, especially with emerging and Commonwealth markets.

He also sees opportunities once Britain leaves the European Union. "GFG companies have a long history of trade within the Commonwealth and we hope to use that experience to design a British bank focused on helping UK companies to access exciting new opportunities in a post-Brexit world."

Trade finance offerings

The bank will offer a core range of trade solutions including L/C discounting, receivables, inventory and supply chain finance, and trade and documentary services associated with trade finance.

The bank also aims to add significantly to the financial services offering within Gupta's global GFG Alliance conglomerate, which comprises metals, industrials, energy, finance and property businesses.

Bank independence

As a regulated entity, CTB will be owned, governed and operated independently of Gupta's other businesses.

The bank's specific expertise in emerging and Commonwealth markets will complement the role of Wyelands Bank, which was purchased by Gupta's group in 2016. Both banks will operate independently.

This article represents the views of the author and not necessarily those of the ICC or Coastline Solutions.