NBD Sana Capital will reportedly set up a $200 million fund to invest in Pakistan’s distressed industrial units and farming projects.
The fund will inject capital into distressed projects primarily in the textile, agricultural and dairy farming sectors, Mirza Ikhtiar Baig, chairman of the Pakistan-UAE business council, told UAE daily newspaper the Kaleej Times. It will also invest in some textile companies to boost their production capacities.
The government has identified companies such as textile manufacturer Pak Denim and Siddique Sons, a sports goods and sportswear manufacturer, as potential investment candidates. Some companies from the renewable energy sector have also been short-listed, the report said.
In December 2008, NBD Sana Capital held a first close on $170 million on its Sharia-compliant buyout fund, which is targeting $500 million. Focused on the MENASA region, the fund targets investments in the telecom, media and technology; energy and resources; healthcare and pharmaceuticals; and retail and consumer sectors.
The firm was set up by NBD Investment Bank, a division of Emirates NBD, the Middle East's biggest bank by assets.
NBD Sana Capital did not respond to requests for comments at press time.