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.