Russian Direct Investment Fund, CITIC Merchant, Renaissance Capital and Onexim Group partner

Private Equity Wire, 16.12.2015

Russian Direct Investment Fund (RDIF), Renaissance Capital, Onexim Group, and CITIC Merchant, a merchant banking arm of CITIC Group, are forming a strategic partnership to promote the interests of Russian companies and Chinese investors in high-opportunity projects in Russia, the CIS, the Middle East and Africa.

The current partnership will facilitate access to debt and equity financing from China for Russian businesses in the framework of the One Belt-One Road initiative, aimed at strengthening the integration processes in the Eurasian economic space through the construction of an infrastructure belt along the route of the historic Silk Road from China to Europe.

The parties have agreed to further expand the partnership through various joint investment and advisory initiatives. By bringing in Renaissance Capital's expertise the parties will significantly boost the capabilities of the Russia-China Investment Bank being developed by RDIF and CITIC Merchant. RCIB will focus on the strategic aspects of the Russian-Chinese cooperation.

Kirill Dmitriev, CEO, Russian Direct Investment Fund (RDIF), says: "The current agreement with the Chinese partners will enhance cooperation through the exchange of international best practices, as well as industry and local expertise. This model of cooperation will significantly reduce the cost of borrowing in China for the Russian corporate sector, and simplify the operation of the Russia-China Investment Bank being created by the Russian Direct Investment Fund and CITIC Merchant."

"The S P China 500 Index is designed to capture the 'Total China' story in a more complete, diversified and efficient approach," says Richard Tang (pictured), CEO of ICBCCS International. "The fund provides very unique China access for investors, and is the first of our UCITS range of China solutions."

"We are pleased to serve as the index provider for this initiative by providing the S P China 500 Index as the underlying of ICBC (Europe) and ICBCCS International's new index fund," said Michael Orzano, Director of Global Equity Indices at S P Dow Jones Indices. "We look forward to working closely with them to facilitate international investors' access to the Chinese equity market."

The fund is the first to use S P China 500 index as benchmark. It will be first registered in Luxembourg, Belgium, France, Italy, Spain, Germany, UK, Switzerland and the Netherlands, and is available in different share classes including RMB, USD, EUR, GBP and CHF.