Russia's Troika Dialog wants Temasek for $1 bln fund

SINGAPORE, March 31 (Reuters) - Troika Dialog, Russia's No. 2 investment bank, said on Monday that it plans to raise $1 billion from an infrastructure fund and is seeking Singapore's state-owned Temasek [TEM.UL] as a return investor.

The fund will have its first closing in January 2009 and invest in Russian utilities and logistics projects such as waste management, electricity and water supply, and port terminals, said Troika Dialog Managing Director Andrei Sharonov.

"We hope most of the investments will come from Asia especially bearing in mind the situation in the U.S. and European markets," Sharonov told reporters ahead of a Russia-Singapore business conference.

Temasek had partnered Troika Dialog for the Russia New Growth private equity fund in 2005, which focused on the retail, entertainment and financial industries.

Sharonov said the bank was in talks with another institutional investor in Asia with experience in infrastructure projects, to become a cornerstone partner in the new fund.

Troika Dialog is also planning to set up a representative office in Singapore this year to be closer to the Asian market, and is in the process of hiring a person to lead it, said its head of international network Philippe Rakotovao.

He said the investment bank will not seek a banking license in the city-state. (Reporting by Daryl Loo; Editing by Jan Dahinten)