$100m raised for ASEAN investment
$100m raised for ASEAN investment
SINGAPORE (AFP): An ASEAN regional investment fund to be listed this month in Singapore and Osaka has raised US$100 million, its lead managers and participating regional banks announced here yesterday.
The ASEAN Supreme Fund Ltd. is aimed largely at investing in equity markets in the seven-member Association of Southeast Asian Nations, which groups Brunei, Indonesia, Malaysia, the Philippines, Singapore, Thailand and Vietnam.
The fund, the second of its kind, is supported by the ASEAN Bankers Association, which will subscribe to half of the 10 million redeemable preference shares in the fund, offered at $10 each.
The remainder will be publicly offered by Nomura Securities Co. Ltd. in Japan, and privately placed outside Japan by Nomura Singapore Ltd.
"The investment objective of the fund is to achieve long-term capital appreciation in equity and equity-related securities of companies in the ASEAN countries," said a statement from Nomura and the ASEAN bankers' group.
At least 80 percent of the fund's portfolio will be in listed securities.
"The fund will provide another opportunity for the investors to place their confidence in the continuing and robust economic growth of the ASEAN countries," said Wong Nang Jang, chairman of the ASEAN Banking Council and director of the fund.
The new regional fund comes eight years after the ASEAN Fund Ltd., which raised $150 million, was launched listed on the Stock Exchange of Singapore (SES).
"The fund has consistently performed very well and its net asset value has more than doubled in recent years," the press statement said.
The SES has approved in principle the new fund's listing, and an application has been made with the Osaka Securities Exchange. The offer closes on September 18 and the fund is due to be listed on the two exchanges on Sept. 24.
Officials said the fund would be closed-ended for 10 years, after which it may be converted to open-ended status depending on shareholders' approval.