Citibank's infrastructure fund

Citibank's infrastructure fund

SINGAPORE (AFP): Citibank NA announced yesterday the launch of a new fund it said would allow subscribers to invest in Asia's booming infrastructure industry.

"Between US$1 trillion and $2 trillion will be spent on developing infrastructure in Asia over the next six years or so. We see this as an opportunity for investors," David Tucker, Citibank marketing director for Asia-Pacific, said.

The Singapore-dollar denominated Citi-Asia Infrastructure Fund (CAIF) will mostly invest in companies expected to benefit as Asian countries develop physical and social infrastructure.

Initially, 18 percent of the fund raised will be invested in companies quoted on the stock exchange in Malaysia, 15 percent each in Hong Kong and Taiwan, 13 percent in South Korea, 11 percent in Thailand and 10 percent in Singapore.

Companies in the Philippines and Singapore will each be allocated four percent each with about 10 percent of the fund kept liquid.

The Asian countries in which the fund will invest are expected to spend some $1,937 billion on infrastructure by 2000, a Citibank statement said.