Citizens Investment Trust (CIT), a government entity, is planning to diversity its investments in infrastructure sector. So far its investments have been limited to deposits in banks and financial institutions (BFIs) and government bonds.

As a part of its new policy, the trust recently signed Rs 2 billion loan agreement with Upper Tamakoshi Electricity Project (UTHEP).

Following the footsteps of Employees’ Provident Fund (EPF), CIT has also entered into commercial complex construction. The trust is constructing a commercial complex at Baneshwor with the investment of more than Rs 400 million. “We want to use our resources in diverse fields, especially in infrastructure sector.” said Sushil Aryal, chief of investment and fund management department of CIT.

EPF is investing more than Rs 1 billion for building individual houses, apartments and commercial complexes at Lagankhel and Teku in Kathmandu, Kalyanpur in Chitwan and Itahari in Sunsari.

 “The complex to be constructed by CIT will be spread over 6 ropanies and will be used for commercial and office purposes,” said Aryal. As per the plan, the complex will have two floors for parking.

According to Aryal, CIT has plans to increase investments in hydropower, road and the projects to be run under public private partnership concept, among others. The Trust is preparing to introduce new investment guidelines shortly. “We have already assigned experts for drafting the investment policy,” said Aryal.

CIT holds deposits of general public and government employees. It provides certain benefits to the public by investing the money in corporate shares, debentures and government securities.

Currently, more than half of its resources are deposited in BFIs. Of the total financial resources of Rs 22 billion, it has deposited more than Rs 9 billion in commercial banks, Rs 3 billion in finance companies and Rs 2.5 billion in development banks. It has invested Rs 1.62 billion in government bonds; Rs 3.22 billion has gone for lending to its members, Rs 2 billion in debentures and Rs 650 million in term loans.

source: The Kathmandu Post:Money (2010),"CIT to diversify investments", The Kathmandu Post, 12 Jan 2011