Blackstone Affiliate Secures RBI Approval for Stake Buy in Federal Bank

Blackstone affiliate Asia II Topco XIII has received approval from the RBI to acquire up to 9.99% of Federal Bank's share capital or voting rights. The investment, valued at $705m, will be made through convertible warrants and includes a provision for Blackstone's affiliate to nominate a non-executive director to Federal Bank's board. This follows recent foreign investments in Indian financial institutions, including Emirates NBD's acquisition of a stake in RBL Bank.