The Memorandum of Understanding (MOU) for an Indo-Oman Joint Investment Fund has been signed. The agreement was signed during the Prime Minister’s visit to Oman yesterday.
The text of the MOU follows:
Memorandum of Understanding (MOU)
Indo-Oman Joint Investment Fund
This Memorandum of Understanding (hereinafter called “MOU”) is made on 8th November
2008 by and among
STATE BANK OF INDI A, a Statutory Corporation incorporated under the provisions of the State Bank of India Act, 1955 and having its Corporate Office at Madam Cama Road, Nariman Point, Mumbai-400021 (hereinafter referred to as “SBI”);
STATE GENERAL RESERVE FUND OF THE SULTNATE OF OMAN, established pursuant to Sultan Decree 1/80, whose registered office is at PO Box 188, Muscat, Sultanate of Oman (hereinafter referred to as “SGRF”).
The foregoing also collectively referred to hereinafter as the “Parties” and individually as a “Party”
Purpose of the MOU
WHEREAS the Parties desire to set up an Indo – Oman Joint Investment Fund for making investments in infrastructure, Tourism, Health, Telecom, Utility & Urban infrastructure and other sectors as may be mutually agreed upon in India and Oman and resolve as follows:
1. To work towards
a. The establishment of a Fund with an equity contribution of US$ 100 million or in equivalent currency contributed by both parties equally on mutually agreed terms and conditions.
b. Enlarging the size of the Fund to a maximum of US$ 1.5 billion which could be raised as long tenor debt and equity capital in several tranches over the next few years.
c. Both Parties may invite other entities of similar nature who can participate into the fund
2. To determine various options for the structure of the fund taking into account all relevant regulatory and tax considerations.
3. The Parties would make best efforts to jointly prepare and present to their respective Governments a Joint Comprehensive Proposal (JCP) within a period of not exceeding three months from the signing of this MOU, so that further steps may be taken to establish and operate the Fund by entering into a Joint Venture Agreement (JVA) on mutually acceptable terms.
4. Each party shall bear its own cost in the preparation of the JCP, which will be submitted to the respective Governments.
5. General Terms
(i) This MOU shall be valid and effective for a period of two years from the date hereof. It may be extended on mutual consent for another similar period.
(ii) The MOU can be amended consensually by the parties. Such amendments shall be deemed to be incorporated into the present MOU and shall form an integral part thereof.
(iii) The MOU is limited to the expression of the broad profile of mutual cooperation between SGRF and SBI in relation to the establishment of a fund, and is not intended to impose any binding obligation of any nature on either party. Each Party recognizes that the other requires approvals (internal and external), and may be subject to disclosure and obligations in relation to the establishment of a fund as contemplated herein.
(iv) The MOU may be terminated by either Party with a prior written notice of not less than two months.
(v) The provisions of this MOU shall be superseded by the provisions of the JVA, referred to in clause 3 herein above, at such time that it comes into force.
6. IN WITNESS WHEREOF the Parties have caused the execution of this MOU by their duly authorized representatives on the day and year above written.
For and on behalf of
SATATE BANK OF INDIA
Name Sanjay Kumar Bhattacharyya
Title Managing Director
Date 8th November 2008.
For and on behalf of
MINISTRY OF FINANCE OF THE SULTANATE OF OMAN
Name Darwish Ismail Al Balushi
Title Secretary General
Date 8th November 2008