Bankers Trust plans $1b SEA fund

Bankers Trust plans $1b SEA fund

SINGAPORE (Reuters): Bankers Trust Corp said yesterday it
planned a US$1 billion private investment fund to take equity
stakes in Southeast Asian companies.

"The target of the fund would be approximately $1 billion,"
Bankers Trust executive vice president Rodney McLauchlan told
reporters on the fringes of an industry conference.

McLauchlan said the fund, aimed at large corporate and
institutional investors, would look at opportunities for direct-
equity investments throughout the region. It would look at a
broad range of up to 10 industrial sectors.

"It is a very exciting program for us because we feel there
are lots of opportunities in Asia," he said.

The fund would help bring much-needed capital to Asia and help
bring business efficiencies, he said.

The bank would also be looking at arranging possible debt-
equity swaps for its own account. These swaps could be another
way of helping to recapitalize beleaguered companies.

"A lot of borrowers need cash and they do have assets that are
pretty valuable," he said.

A Taiwan government-inspired private fund to invest in
financially battered Southeast Asia is also expected to be
established in June, the fund's leading proponent said on
Tuesday.

Benny Hu, president of Taiwan venture capital giant China
Development Corp, said a preparatory committee for the Southeast
Asia Investment Company had decided to increase the capital for
the planned firm to T$30 billion from T$20 billion.

"Increasing the capital before the company is actually set up
will save us some future trouble, but does not mean we are
obliged to raise all the money at once," Hu told reporters.

Any changes in the company's capitalization would require
complicated procedures, Hu explained at a news conference.

"We have set June 19 as the deadline for the collection of
initial payments," Hu said. "We hope to raise some T$10 billion
in the first stage and we can start operations immediately."

China Development is at the forefront of a government-inspired
drive in Taiwan to help the crisis-hit region through private
investments and possible state aid.