The South Asia Regional Fund (SARF), floated jointly by the UK-based Commonwealth Deve-lopment Corporation (CDC) and Indian, Pakistani and Singapore-based financial institutions, has raised about $115 million in its first tranche, which closed on January 31.
The venture funds second tranche is now open and is expected to close on June 30. The fund is to be invested in South Asian Association for Regional Cooperation member countries, with the largest part coming to India.
Commonwealth Development Corporation has invested $50 million in the first tranche of the fund, which aims at long term capital appreciation, primarily through investments in equity and quasi-equity instruments.
The fund is targeting an internal rate of return of 20 per cent in dollar terms.
Among the Indian institutions, Industrial Development Bank of India (IDBI) is the largest investor with a contribution of $10 million followed by State Bank of India and Unit Trust of India with an investment of $5 million each.
Singapore-based Temasek Holding (Pvt) Ltd has invested $10 million, and the Employees Provident Fund, Malaysia another $5 million. The National Bank of Pakistan has invested $10 million and other Pakistani banks
