Singapore-based sovereign wealth fund GIC has announced an investment of Rs10.2bn ($165.5m) in Indian company Bandhan Financial Services, which offers small-value loans.
Bandhan chairman Chandra Shekhar Ghosh told Reuters that the company is setting up two new banks in the country.
According to him, existing investor IFC, part of the World Bank Group, will offer a total equity investment of INR16bn ($259m), including INR5.8bn ($94m) to the company.
In Bandhan, IFC is said to hold 10.8% stake, which is expected to increase after the latest investment and SIDBI owns 10%, while trusts and employees own the remaining equity, reports Times of India (TOI).
Following the new investment, Bandhan is expected to possess a capital base of about Rs32bn ($519m).
In 2014, Bandhan and IDFC received in-principle bank licenses from the Reserve Bank of India, reports TOI.
GIC was formerly known as Government of Singapore Investment Corporation and is a sovereign wealth fund established by the Government of Singapore in 1981 to manage Singapore’s foreign reserves.
The company has a network of nine offices in key financial capitals around the world and invests internationally in equities, fixed income, money-market instruments, real estate and special investments.