Global Business - Corporate Banking SPVs - Bhumishq

Global Business

CROSS BORDER CORPORATE

BANKING SPVs

Discover how Bhumishq enables
cross-border corporate banking SPVs

DOWNLOAD BHUMISHQ MAURITIUS IFC BROCHURE

Bhumishq

 

CROSS BORDER CORPORATE BANKING OPPORTUNITY

Cross-border corporate banking, including deposits from investment vehicles, accounts for 32% of the IFC’s economic value add. This equates to US$~480 million in banking revenues, 70% of which is cash management and the rest a mix of corporate lending, structured lending, trade finance and payments. The main clients are cross-border structures, regional treasury and procurement centres serving African corporates, MNCs, and state institutions.

The Mauritius IFC aims to become the African finance and treasury hub with initiatives to attract corporates to establish regional headquarters, regional treasury centres, and corporate procurement centres. It has underpinned its growth with special initiatives, e.g., headquarters and treasury activities with tax incentives and other assistance.

Treasury management.

The sheer size of the Africa cross-border cash management opportunity makes it a very attractive IFC activity. It is expected to grow 13% p.a. to a US$9.5 billion banking revenue market by 2030, driven by the increasing number of regional players in Africa and the expansion of existing players, especially in cash-rich industries (30% of African and MNC regional players are in, e.g., retail, FMCG, telecom and services).

Trade finance.

Although small today, rapid growth is expected in this segment. Three main activities underlie this opportunity: pure export/import financing to regional procurement centres; letter of credit (LC) discounting to African corporates and state organisations looking for affordable hard currency; and commodity financing.

Relative to its regional competitors, Mauritius has a compelling value proposition: free capital flows, availability and convertibility of foreign currency, attractive tax regime, and a relatively stable political climate and economy.

Value Propositions in the Cross-Border Corporate Banking Business Segment.

The Mauritius IFC has created its value propositions namely two specific licenses for SPVs.

  • The Global Headquarters Administration Scheme and
  • The Global Treasury Activities Scheme.

Global Headquarters Administration

Regulator:

Financial Services Commission

Enabling legislation:

s.14 of the Financial Services Act 2007.

Eligibility Criteria:

Provision of at least 3 of the following services to at least 3 related corporations

  • Administration and general management
  • Business planning and development and coordination
  • Economic or investment research and analysis
  • Services related to international corporate headquarters in Mauritius
  • Such other global headquarters administration services as may be specified in FSC Rules

Economic Substance Requirements:

  • Employment of 10 professionals with at least 2 at managerial position.
  • Minimum annual expenditure of Rs.5 million.
  • To have its principal bank account in Mauritius.
  • To have physical office space in Mauritius.

Tax Incentives:

8 year tax holiday.

Statutory Fees:

  • One-Off Processing Fees to the FSC: US$ 1,000
  • Annual License Fees to the FSC: US$ 2,500
  • Annual CBRD Fees: US$ 275.

Regulator:

Financial Services Commission

Enabling legislation:

s.14 of the Financial Services Act 2007.

Eligibility Criteria:

Provision of at least 3 of the following services to at least 3 related corporations

  • Arrangement for credit facilities, including credit facilities with funds obtained from financial institutions in Mauritius or from surpluses of network companies
  • Arrangement for derivatives
  • Corporate finance advisory
  • Credit administration and control
  • Factoring, forfeiting and re-invoicing activities
  • Guarantees, performance bonds, standby letters of credit and services relating to remittances
  • Management of funds for designated investments
  • Such other global treasury activity as may be specified in FSC Rules

Economic Substance Requirements:

  • Employment of 4 professionals with at least 1 at managerial position.
  • Minimum annual operating expenditure of Rs.2 million.
  • To have its principal bank account in Mauritius.
  • To have physical office space in Mauritius.

Tax Incentives:

  • 5 year tax holiday.

Statutory Fees:

  • One off Processing Fees to the FSC: US$ 1,000
  • Annual License Fees to the FSC: US$ 2,500
  • Annual CBRD Fees: US$ 275.

 

SOME MAURITIUS IFC
USE CASES:

  • Banks with retail and commercial banking presence in multiple African countries have set up their captive treasury centres in the Mauritius IFC.
  • Multi-country or Pan African Banks, Insurance and Financial Institutions have set up their captive digital financial technologies and fintech platforms in the Mauritius IFC.
  • Brokerage and Gaming companies capturing African traffic have set up their data centre, B2B SAAS together with their accounting, payments, procurement and vendor management centres in the Mauritius IFC.

  • African conglomerates and multi nationals with African presence have set up their sales and marketing, invoicing and payments, accounting and treasury centres in the Mauritius IFC.
  • Enterprise Digital technologies and B2B SAAS companies capturing African markets have set up their data centre, cloud, marketing, sales, invoicing, payments, accounting, procurement and vendor management centres in the Mauritius IFC.

This website uses cookies to ensure you get the best experience on our website.

Learn more I agree