AU Small Fin Bank raises Rs 525 cr from Temasek arm Camas Inv; sovereign wealth fund's stake in lender up at 4.8%

Temasek has invested the money through the conversion of its 1.01 crore warrants.

Press Trust of India December 13, 2019 17:49:09 IST
AU Small Fin Bank raises Rs 525 cr from Temasek arm Camas Inv; sovereign wealth fund's stake in lender up at 4.8%
  • Temasek has invested the money through the conversion of its 1.01 crore warrants

  • Post this investment, the bank's net worth would increase to more than Rs 4,000 crore, it said

  • In June 2018, the sovereign wealth firm had made a commitment to invest Rs 1,000 crore in the small finance lender.

Mumbai: AU Small Finance Bank on Friday said Singaporean sovereign wealth fund Temasek through its wholly-owned subsidiary Camas Investments Pte has invested Rs 525 crore ($74 million) in the lender by conversion of warrants.

With this investment, Temasek has firmed up its stake at 4.8 percent in AU Bank, a statement said.

AU Small Fin Bank raises Rs 525 cr from Temasek arm Camas Inv sovereign wealth funds stake in lender up at 48

Representational image. Reuters

"The completion of Temaseks investment is a reflection of the uniqueness of our secured retail and steadily growing granular deposit franchise, stable portfolio quality, margins and growth headroom," its managing director and CEO Sanjay Agarwal said in a release.

Temasek has invested the money through the conversion of its 1.01 crore warrants.

Post this the bank's net worth would increase to more than Rs 4,000 crore, it said.

It will significantly aid its capital adequacy and core tier I capital which was at healthy levels of 19.7 percent and 16.7 percent, respectively as on 30 September 2019.

In June 2018, the sovereign wealth firm had made a commitment to invest Rs 1,000 crore ($141 million) in the small finance lender.

The Jaipur-based lender which became a small finance bank in April 2017, has operations across over 500 touch points including 395 bank branches, 96 asset centers, 28 offices and 292 ATMs across 11 states.

Updated Date:

also read

PE, VC investments reach $20.5 bn in 2018 on deals in startups, e-commerce, ITeS: Report
Business

PE, VC investments reach $20.5 bn in 2018 on deals in startups, e-commerce, ITeS: Report

The report said it is not unusual to witness high levels of public spending in election years and it may push investments in rural and infrastructure-related sectors in the near-term.

India abandons a stupid idea: no sovereign wealth fund
Economy

India abandons a stupid idea: no sovereign wealth fund

A country with huge external debts cannot afford a sovereign wealth funds. It is good that the idea is finally being laid to rest due to penury

NIIF to commence funding infra-related projects in few days: Arun Jaitley
Business

NIIF to commence funding infra-related projects in few days: Arun Jaitley

The government had set up the Rs 40,000-crore fund in December last year as an investment vehicle for funding commercially viable greenfield, brownfield and stalled projects