RDIF, Egyptian banks to look for investment projects in Egypt
CAIRO. Feb 3 (Interfax) - The Russian Direct Investment Fund (RDIF) will work with major Egyptian banks to look for investment targets in Egypt.
The RDIF, the National Bank of Egypt and Banque Misr signed a memorandum of understanding on the development of investment cooperation in Cairo on Tuesday.
The parties will form a working group to develop a joint investment platform to finance Russian-Egyptian projects in Egypt and support Russian companies entering the Egyptian market, the RDIF said.
The fund is also continuing consultations with Egypt's Finance Ministry on the creation of an investment fund modeled on the RDIF. The parties agreed to work on this issue a year ago.
"The signed agreement is part of the work that began back during the Russian president's visit to Egypt, when a decision was made to also develop investment cooperation between the countries. It was proposed that a fund modeled on the RDIF be created in Egypt in future. Since this takes a certain amount of time, one of the stages is the signing of an agreement with Egyptian state banks for the creation of an investment platform that will be a kind of first filter for projects presented for consideration by the Egyptian side," RDIF first deputy CEO Tagir Sitdekov told reporters.
The projects that will be selected by the work group will have to meet several criteria, including protection of capital for investors, participation of local co-investors and mandatory bank financing, Sitdekov said.
"We're already receiving projects from various sectors - agriculture, infrastructure, including transport, engineering and production of construction materials. The signed agreement establishes the first results and principles of working on these projects. They have not been finally selected yet. We would like to make a shortlist of projects and begin to substantively work on them with Russian companies," Sitdekov said.