HAVANA (Reuters) - CEIBA Investments, a closed-end fund that invests only in Cuba, plans to list on the London Stock Exchange in June, a sign of growing interest in the socialist state since Fidel Castro was sidelined by illness.

The fund, registered in the Channel Islands, announced this week it raised its capital by 18 million euros (14 million pounds) to 88 million euros in a share placing that was 70 percent oversubscribed.

CEIBA is the only fund dedicated exclusively to investing in Cuba, focusing on real estate development and tourism. It is the foreign shareholder of the Cuban joint venture that owns the Miramar Trade Center, Havana's main business district.

"We will be the first vehicle for investment in Cuba to be quoted on a major market," said the fund's managing director, Sebastiaan Berger, a Dutch lawyer.

Berger said the oversubscription of shares at a time of gloom on financial markets showed that investors were really interested in Cuba.

Steps to liberalize Cuba's state-dominated economy have begun under President Raul Castro, who succeeded his brother Fidel on February 24 as the first new Cuban leader in half a century.

CEIBA's management is not betting on Communist Cuba opening up to capitalism any time soon, though the lifting of U.S. sanctions against Havana would likely result in a large increase in the fund's asset value.

"We are not an event-driven fund. We are investing in ventures that make sense today in Cuba and our aim is long-term capital growth," Berger said.

The fund's investors include investment trust SVM Global and hedge fund Value Catalyst, as well as pension funds and banks. For three years, the fund has had a yield of 6 percent to 8 percent and paid shareholders annual dividends of 6 percent.