Allied Boston looking at investments of $1 bn in Indian companies
Source : ET
Jul 12, 1999, 8:06:21 AM
Allied Boston International Inc,the United States based investment major is looking at investments up to $ 1 billion in Indian companies in the form of loans and equity during the current fiscal. The fund has entered into a memorandum of understanding (MoU) with Fedex Securities, a Mumbai-based financial services company engagedin non-fund based activities to identify avenues for the US-based fund to invest in.
Allied Boston is the American arm of the Geneva-based Allied group. The Allied group has operations in seven countries including the US and has so far disbursed funds of over $ 72 billion across the globe.
Of the total funding made by Allied Boston to Indian companies, 75 per cent would be in the form of loans while the balance 25 per cent would be in the form of equity. Fedex Securities' managing director, K Madhavan said that Allied Boston, through its Indian partner, is already at an advanced stage of negotiations with six leading business houses in India for funding arrangements. The fund will however offer financing only to clients looking for amounts of $ 5 million or more.
Allied Boston, through one of its group companies, ABE Technolocies, also plans to take an entry into the information technology sector in India. Allied Boston will also extend funding to ISPs established through ABE Technologies in India. Also, a unique financing facility by ABE Technologies allows small and mid-sized businesses to realise their on-line goals. The company assists clients in obtaining the necessary capital to develop, launch and maintain an Internet system. |
