UOB in partnership to launch US$200 mil mezzanine fund

United Overseas Bank is partnering with Japanese financial services firm Orix Corp to launch a US$200 million ($250 million) mezzanine fund, reported the local media.

Called the United Orient Capital Fund, it aims to provide expansion capital to mid-sized companies in South-east Asia.

Said to be the first Singapore bank to launch such a fund, UOB will invest in mid-sized companies through loans or purchasing bonds and preference shares.

To qualify, eligible companies would have to have a mature operation, strong cash flow and good management team, said UOB.