Standby letter of credit (L/C) specialist Bachmann and Welser Capital of the UK and Blend Financial Services of India, a provider of trade finance, corporate and financial advisory services, have signed a memorandum of understanding (MoU) to extend their global reach.

Bachmann and Welser is a start-up financial services company established at the end of last year by former city of London financiers and investment bankers while Blend is an Indian company founded in 1997 with offices in Dubai, UK, Singapore, Kenya, the US and India.

Global collaboration

Under the MoU, which is valid for one year, the two firms say they will collaborate to provide funding solutions to clients globally.

Based in the Scottish capital city of Edinburgh, Bachmann and Welser says it is specifically aiming to establish operations in South America and South East Asia.

Emerging market focus

According to the UK firm's CEO, Edward Bachmann, the two parties' combined experience will yield results in markets where several global banks are cutting back their trade finance services.

"Our combined experience in the trade finance industry makes us well placed to create innovative, reliable and safe solutions for our clients especially those in the emerging markets," he says.

In January, Bachmann and Welser announced the successful completion of a US$750 million equity capital raise and additional commitments of US$500 million from Middle-Eastern investors.

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