Dutch FMO to invest euro 100 million in Indian corporates
By Our Corporate Bureau | 02 Sep 2003
Chennai: The Netherlands Development Finance Company (FMO) has decided to invest euro 100 million in Indian corporates.
The investment will be predominantly in debt instruments and the balance will be in equity and guarantees. FMO senior investment officer (Asia) Geert van de Guchte says the company has already invested around euro 70 million in India.
It is reliably learnt that FMO is considering investment in a Mumbai-based textile company and a financial services firm. The Dutch organisation has invested in the Bharti group ($10 million) and has guaranteed some portion of paper major Ballarpur Industries' Rs 140-crore secured non-convertible debenture issue.
"Our investment philosophy is to earn not less than 15 per cent in the case of equity and not lower than 1.5 per cent margin in respect of debt," says Guchte.
FMO has lent $6 million each to two truck-financing companies (Shriram Investments and Shriram Transport Finance Company). Both the companies are part of the city-based Shriram group and are involved in financing second-hand truck purchase