SBI, Brook­field set to un­veil stressed as­set man­age­ment fund

The Pak Banker - - MARKETS/SPORTS -

State Bank of In­dia (SBI) and Brook­field As­set Man­age­ment Inc. have signed a mem­o­ran­dum of un­der­stand­ing (MoU) to launch a dis­tressed as­set man­age­ment fund, the bank said in a state­ment on Wed­nes­day.

As part of the agree­ment, the two have pro­posed to launch a joint ven­ture (JV) where Brook­field will com­mit ap­prox­i­mately Rs.7,000 crore and SBI will put in up to 5% of the to­tal in­vest­ments into stressed as­sets.

The fund will in­de­pen­dently eval­u­ate and in­vest in var­i­ous stressed as­sets, and will rely upon the Cana­dian as­set man­ager's oper­a­tional ex­per­tise to man­age re­cap­i­tal­ized busi­nesses.

"The pro­posed JV may, at a later stage, seek par­tic­i­pa­tion from other lenders in the iden­ti­fied as­sets," the state­ment said.

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