GE plans to lend more in Aus
(14 April 2009 – Australia) Global conglomerate, General Electric, has indicated that it will look to become a force in corporate lending in Australia, filling the gap left by foreign lenders.
The Australian newspaper has reported that GE, which primarily operates as GE Capital in Australia, has plans to use its global balance sheet to push deeper into the corporate market, where major refinancings are due in the next year.
Typical of the current market, GE is picking and choosing its ideal market. GE recently exited its motor financing business in Australia and sold Wizard to Aussie Home Loans.
Now, Australian chief executive, Steve Sargent, told the Australian that GE will now target mid-range corporates, but only those that were due to refinance and those in sectors in which the major traditional banks were not over-represented.
Sargent indicated that GE would look towards potential new lending in fairly broad areas, including some manufacturing and distribution companies and broad services companies.
Also, energy is one area where GE believes they have a lot of experience that they can leverage off.
Sargent added that he is seeing that there are a few lending portfolios out there; portfolios of credit that are for sale.
Sargent doesn’t believe that too many people will take their capital out of Australia, but that we will see few reinvesting their capital.
For GE, it's an important market, Sargent said. Most of GE’s businesses play where the banks are not strong or aren't at all, Sargent concluded.
Typical of the current market, GE is picking and choosing its ideal market. GE recently exited its motor financing business in Australia and sold Wizard to Aussie Home Loans.
Now, Australian chief executive, Steve Sargent, told the Australian that GE will now target mid-range corporates, but only those that were due to refinance and those in sectors in which the major traditional banks were not over-represented.
Sargent indicated that GE would look towards potential new lending in fairly broad areas, including some manufacturing and distribution companies and broad services companies.
Also, energy is one area where GE believes they have a lot of experience that they can leverage off.
Sargent added that he is seeing that there are a few lending portfolios out there; portfolios of credit that are for sale.
Sargent doesn’t believe that too many people will take their capital out of Australia, but that we will see few reinvesting their capital.
For GE, it's an important market, Sargent said. Most of GE’s businesses play where the banks are not strong or aren't at all, Sargent concluded.
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