Federal Bank in tie up with Singapore's Scube Capital launches debt fund

Leading private sector lender Federal Bank has launched a debt/bond fund with a targeted AUM of USD 200 million in association with the Singapore-based fund manager Scube Capital and Equirus Wealth.

Only NRI customers of the Kochi-based bank can invest in the US dollar fixed maturity bond fund, which targets to mop up around USD 200 million, Hemant Mishr, co-founder and chief executive of Scube Capital, told PTI on Friday.

Scube manages funds across alternate investments, fixed income, and multi-asset investments serving different investor segments and has a collective AUM of around USD 300 million.

Mishr said this fund is open to only the non-resident customers of the bank and his company will be the fund manager. The fund will invest in US-dollar denominated fixed income instruments of Indian and global issuers and will offer a portfolio leveraged target return guidance of 6.50 percent per annum.

The fund, which has been jointly designed with inputs from the Equirus and the Federal bank teams, has a three-year tenor from the date of fund closure, with an option to extend by one year, he added. Shalini Warrier, an executive director & retail banking head at Federal Bank, said the US dollar offshore fund is specially curated by Equirus Wealth and Scube and is only available to its NRI customers.

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