SBICAP Ventures Limited (SVL), an alternative asset manager and a wholly owned subsidiary of SBI Capital Markets Limited has raised 25 million euro from European Investment Bank (EIB).
Eight low-income and developing states including Bihar, Chhattisgarh, Jharkhand, Madhya Pradesh, Odisha, Rajasthan, Uttar Pradesh and West Bengal is eyed by SBICap Ventures for investment while focusing on infrastructure sub-sectors such as renewable energy, agricultural supply chain, healthcare, education, urban infrastructure and roads.
EIB states – “The fund (Neev II) aims to provide equity and quasi-equity support to small and medium sized enterprises (SMEs) that contribute to the achievement of UN’s Strategic Development Goals and climate sustainability in India.”
Neev Fund, sponsored by Department for International Development-Govt. of UK, State Bank of India, Small Industries Development Bank of India, to catalyze investment in Indian states which have traditionally not received private investments.
The Fund has identified and invested in ten portfolio companies in the target states. It’s portfolio companies employ over 6,000 people and have demonstrated a waterfall effect on the value chain that the companies operate in.
The primary objective of the Fund is to create sustainable development which will provide economic, social and/or environmental benefits to the poor in some of the poorest regions of India through market returns on capital investments by carrying out the activity of a Category I Infra AIF, as permissible under the AIF Regulations.
–AK
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