merchant bank


Also found in: Dictionary, Thesaurus, Wikipedia.

Merchant bank

A British term for a bank that specializes not in lending out its own funds, but in providing various financial services such as accepting bills arising out of trade, underwriting new issues, and providing advice on acquisitions, mergers, foreign exchange, portfolio management, etc.

merchant bank

An investment bank that commits its own funds by taking a creditor position or equity interest in another firm. For example, a merchant bank may provide temporary financing for a leveraged buyout.

merchant bank

a BANK which offers a range of financial facilities and services to clients. The merchant banks are still involved in what was their original business, namely the provision of merchandise finance, in the form of ‘acceptance’ notes on BILLS OF EXCHANGE to importers and exporters to cover products in transit. They have extended their interests variously into investment management, stockbroking, MARKET MAKING and corporate finance (see VENTURE CAPITAL). In the latter capacity, merchant banks arrange new stock and share issues on behalf of corporate clients (see SHARE ISSUES) and UNDERWRITE such issues. Merchant banks nowadays play a particularly prominent role in advising corporate clients on MERGERS and TAKEOVER BID tactics and in putting together the financial terms and details of such deals. See BANKING SYSTEM, INVESTMENT BANK.

merchant bank

a BANK that offers a range of financial facilities and services to clients. The merchant banks are still involved in what was their original business, namely the provision of merchandise finance in the form of ‘acceptance’ notes on BILLS OF EXCHANGE to importers and exporters to cover products in transit. They have variously extended their interests into investment management, stockbroking, market-making (see MARKET MAKER) and corporate finance (see VENTURE CAPITAL). In the latter capacity, merchant banks arrange new stock and SHARE ISSUES on behalf of corporate clients and UNDERWRITE such issues. Merchant banks nowadays play a particularly prominent role in advising corporate clients on MERGERS and TAKEOVER BID tactics and in putting together the financial terms and details of such deals. See BANKING SYSTEM.
References in periodicals archive ?
LoHi Merchant Bank is a merchant bank that works with companies looking for solutions to their capital raising, M&A, and strategic partnering needs.
ANCOUVER: Redfund Capital Corp is opening one of the first medical cannabis merchant banks. It is set to become a global top tier medical cannabis incubator and accelerator providing unique debt and equity funding instruments to companies which require project specific financing to fast-track their business plans.
Dubai: Merchant banks, which not so long ago ruled the financial capitals of the world with their close-knit network of private financiers and underwriters, saw a sharp decline in business from the late 1980s as global bank mergers created mammoth investment banking operations under universal banking models.
Heinz confirmed it is in "advanced and exclusive negotiations" with Lehman Brothers Merchant Bank.
Merchant banks typically support clients with purchase order, trade finance and factoring services.
Depositors' money worth at least N16.33bn went down the drain last January, when the Central Bank of Nigeria withdrew the operating licences of 26 commercial and merchant banks. Of the 26 banks, 13 were commercial (retail) banks while the other 13 were merchant (wholesale) banks.
Coronation Merchant Bank has been named as Best Investment Bank in Nigeria.
well as the merchant bank's local construction expertise through Pantheon's company Oculus Builders.
7 December 2018 - US-based investment bank LoHi Merchant Bank advised US-based hosted VOIP provider CloudNet Group on its acquisition by US-based telecommunications company Momentum Telecom, the firm said.
"The acquisition, business plan implementation and subsequent sale of Santa Fe Springs Plaza is a textbook example of how SKB, a boutique, West Coast, real estate merchant bank, can, when teamed with New York-based yet nimble Praedium Group, produce an exceptional opportunity for both Praedium and SKB's investors," noted Robert D.