SBI to set PE funds with sovereign entities in Oman and Qatar
Printer Print Email Email
Bangalore: The State Bank of India is in the final stages of inking the set up of private equity funds with sovereign entities in Oman. The bank is also designated by the government of India as the operationalizing agency for a similar sovereign fund with Qatar. With an Australian firm, Macquire and Washington, the SBI has an Indian focused fund. The fund was set to boost up the investment in the country's infrastructure sector. The fund will continue its fund raising activities this year. SBI and Macquarie hold 45 percent stake each in the fund as IFC holds the remaining 10 percent stake. Along with contributions from domestic institutions, total capital projected is $2-3 billion. Fully convertible and optionally convertible debentures in the form of equity and mezzanine debt instruments will be provided by the fund for investment in roads, ports, airports and power. All the necessary regulatory approvals for operationalising the fund are obtained by the bank, and have also mobilized over $1 billion from international investors and sponsors. SBI also holds a 20 percent stake in Mumbai based private equity firm, Sage Capital Fund Management. The bank had picked up the stake early last year. The bank has also looked for the permission from the government to raise Rs 20,000 crore Tier I capital (the bank's core equity capital) in the current financial year. The bank is seeking for raising the funds through rights issue, which would implicate a contribution of Rs 12,000 crore from the government.

siliconindia