Temasek Holdings has no direct exposure to collapse of Silicon Valley Bank

Temasek Holdings, the Singaporean sovereign wealth fund, has confirmed that it does not have any direct exposure to Silicon Valley Bank (SVB), according to a Bloomberg report published on 12 March. The confirmation comes after the fund reportedly checked with its portfolio companies to determine their level of exposure to the lender. Other funds, including Sequoia Capital China and Yunfeng Capital, are also said to have made similar inquiries. Regulators on Friday (10 Mar) took control of SVB — a key lender to startups across the United States since the 1980s — after a huge run on deposits left the medium-sized bank unable to stay afloat on its own, becoming the largest US lender to fail since the 2008 financial crisis.

No connection between acquired entity and collapsed SVB

Articles about Temasek's previous deal with SVB has been circulating around on social media and private messaging. In 2015, Temasek acquired the speciality finance business of NASDAQ-listed SVB Financial Group in India for INR300 crore ($48m at the time). Temasek signed a share purchase agreement to buy 100% of the stake in SVB India Finance Private Limited, a subsidiary of Silicon Valley Bank, as well as some of its other subsidiaries. The stake sale in SVB India is part of the lender’s efforts to focus on other strategic areas of business and growth initiative priorities, according to a statement. SVB India Finance was established in 2008 to provide debt capital to domestic, venture-backed, early and mid-stage companies in India. The lender offers collateral-free loans of up to INR15 crore for terms ranging from six months to three years. The acquisition of the venture debt business was said to add another layer to Temasek's credit business in India and expand its exposure to the early stage investment space. The unit was rebranded InnoVen Capital India and rolled out operations in Singapore as part of efforts to establish itself as a pan-Asian venture lender. It is currently co-owned by Temasek and United Overseas Bank.