CIT to invest heavily in hydropower, share market, tourism
Mon, Jul 4, 2011 12:00 AM on Others,
KATHMANDU, JUL 04 -
The Citizens Investment Trust (CIT) is planning to diversify its investment portfolio in the areas of hydropower, share market, tourism and hospitality and low cost housing.
It has already started investing in hydropower and share market, and it seeks to increase its investment in these areas. Tourism and hospitality and low cost housing are new areas it intends to invest in.
Currently, around 60 percent of its resources have gone to banks and financial institutions (BFIs) with commercial banks holding Rs 10 billion, Rs 3 billion in finance companies and Rs 2 billion in development banks. With one after another financial institution landing in trouble, the trust seeks to diversify its resources to minimise the risk. “We will diversify the investment through equity and debt financing,” said CIT Chairman Chandra Mani Adhikari at the 16th annual general meeting of CIT on Sunday.
Currently, it has an investment of four percent in the hydropower sector through term loans and it seeks increase the size to 10 percent. “We have prioritised the hydropower sector and are willing to invest more in the sector through equity and debt financing,” said Adhikari. “But we are yet to decide the size of the investment.”
CIT has signed Rs 2 billion agreement with the Upper Tamakoshi hydropower project. It also seeks to increase its investment in the share market. Its portfolio in the sector increased to more than 12 percent from 8 percent earlier following its entry in both the primary and secondary markets. Recently, CIT invested Rs 50 million in the bonds of Nepal Investment Bank, Rs 75 million to purchase rights shares of Citizens Bank International which were not subscribed. It also purchased 781,000 units of rights shares worth Rs 78.88 million of Bank of Asia Nepal.
The government has also asked CIT and other institutional depositors to invest in the secondary market.
CIT also plans to invest up to 10 percent of its resources in the tourism and hospitality sectors. “Till date, we have not invested in these sectors, but want to finance hotels and other tourism products,” said Adhikari.
The trust has also targeted low-cost housing. It may invest in the sector either directly venturing into the projects or financing such projects initiated by others. “It may take some time for us to venture in such projects as we will have to enhance our capacity,” said Adhikari, adding that CIT also wants to invest in urban infrastructures through public private partnership.
Source: Kantipur
The Citizens Investment Trust (CIT) is planning to diversify its investment portfolio in the areas of hydropower, share market, tourism and hospitality and low cost housing.
It has already started investing in hydropower and share market, and it seeks to increase its investment in these areas. Tourism and hospitality and low cost housing are new areas it intends to invest in.
Currently, around 60 percent of its resources have gone to banks and financial institutions (BFIs) with commercial banks holding Rs 10 billion, Rs 3 billion in finance companies and Rs 2 billion in development banks. With one after another financial institution landing in trouble, the trust seeks to diversify its resources to minimise the risk. “We will diversify the investment through equity and debt financing,” said CIT Chairman Chandra Mani Adhikari at the 16th annual general meeting of CIT on Sunday.
Currently, it has an investment of four percent in the hydropower sector through term loans and it seeks increase the size to 10 percent. “We have prioritised the hydropower sector and are willing to invest more in the sector through equity and debt financing,” said Adhikari. “But we are yet to decide the size of the investment.”
CIT has signed Rs 2 billion agreement with the Upper Tamakoshi hydropower project. It also seeks to increase its investment in the share market. Its portfolio in the sector increased to more than 12 percent from 8 percent earlier following its entry in both the primary and secondary markets. Recently, CIT invested Rs 50 million in the bonds of Nepal Investment Bank, Rs 75 million to purchase rights shares of Citizens Bank International which were not subscribed. It also purchased 781,000 units of rights shares worth Rs 78.88 million of Bank of Asia Nepal.
The government has also asked CIT and other institutional depositors to invest in the secondary market.
CIT also plans to invest up to 10 percent of its resources in the tourism and hospitality sectors. “Till date, we have not invested in these sectors, but want to finance hotels and other tourism products,” said Adhikari.
The trust has also targeted low-cost housing. It may invest in the sector either directly venturing into the projects or financing such projects initiated by others. “It may take some time for us to venture in such projects as we will have to enhance our capacity,” said Adhikari, adding that CIT also wants to invest in urban infrastructures through public private partnership.
Source: Kantipur
