Federal Bank in partnership with Scube Capital of Singapore launches debt fund

Leading private sector lender Federal Bank has launched a debt/bond fund with a target outstanding amount of $200 million in association with Singapore-based fund manager Scube Capital and Equirus Wealth.

Only NRI clients of the Kochi-based bank can invest in the US dollar fixed-maturity bond fund, which aims to mop up about $200 million, Scube Capital co-founder and managing director Hemant Mishr told PTI on Friday. .

Scube manages funds across alternative investments, fixed income investments and multi-asset investments serving different investor segments and has approximately $300 million in collective assets under management.

Mishr said this fund is only open to non-resident clients of the bank and his company will be the manager of the fund. The fund will invest in US dollar denominated fixed income instruments of Indian and global issuers and will provide a leveraged target return orientation of 6.50% per annum.

The fund, which was co-designed with contributions from the Equirus and federal bank teams, has a term of three years from the fund closing date, with an option to extend for one year, a- he added.

Shalini Warrier, executive director and head of retail banking at Federal Bank, said the US dollar offshore fund is specially organized by Equirus Wealth and Scube and is only available to its NRI clients.

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