RDIF and China Development Bank intend to set up $10bn joint investment fund in RMB

Press release, 04.07.2017

Moscow, 4 July 2017 — The Russian Direct Investment Fund (RDIF) and China Development Bank (CDB), the world’s largest financial development institution, have envisaged the constitution of the China-Russia RMB Investment Cooperation Fund. The Memorandum of Understanding was signed today by the executives of the RDIF and CDB during the Russia-China negotiations in Moscow. It was attended by Vladimir Putin, the leader of the Russian Federation, and Xi Jinping, the leader of the People’s Republic of China.

China-Russia RMB Investment Cooperation Fund is expected to facilitate the establishment of a simplified framework for direct investments with settlements in national currencies. The investments will be total RMB 68bn ($10bn equivalent). The investment activities will focus on Russian and Chinese projects, including One Belt-One Road and Eurasian Economic Union initiatives. RDIF will implement the project via the Russia-China Investment Fund (RCIF) created jointly by RDIF and China Investment Corporation, while CDB will implement the project via its wholly owned subsidiary China Development Bank Capital (CDBC).

Kirill Dmitriev, the CEO of the Russian Direct Investment Fund (RDIF) and the Co-CEO of the Russia-China Investment Fund (RCIF), said:
“We are happy to announce our partnership with China Development Bank and offer Chinese investors an opportunity to provide capital denominated in the national currency. This framework is a powerful driver of direct cross-border investments with a potential to increase the number of joint Russia-China projects significantly.”

Huaibang Hu, the Chairman of the China Development Bank (CDB), said:
“China-Russia RMB Investment Cooperation Fund is an important co-operation between China and Russia in the equity investment segment, which is acknowledged and supported by Chinese and Russian governments. It will promote the comprehensive and long lasting financial and economic partnership between two countries, and facilitate RMB internationalization.”

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Russian Direct Investment Fund (RDIF) is a Russian sovereign fund established in 2011 to make equity co-investments, primarily in Russia, alongside reputable international financial and strategic investors. RDIF acts as a catalyst for direct investment in the Russian economy. RDIF’s management company is based in Moscow. Further information can be found at www.rdif.ru

Russia-China Investment Fund (RCIF) is a joint fund established by the Russian Direct Investment Fund and China Investment Corporation (CIC). The activity of RCIF is aimed at development of bilateral economic, trade and investment relations between Russia and China. Further information can be found at www.rcif.com

China Development Bank (CDB) was founded in 1994 as a state-funded development financial institution under the direct leadership of the State Council. It is dedicated to supporting the development of national infrastructure, basic industry and pillar industry. Committing to its mission of “enhancing national power and improving people’s livelihood”, CDB has become the backbone in providing medium to long term investing and financing facilitates, the largest cross-border financing bank, and the largest development finance institution in China. Further information can be found at www.cdb.com.cn

China Development Bank Capital (CDBC) is a wholly-owned subsidiary of CDB with a registered capital of nearly RMB 60 billion. The investment business has gradually taken the shape of five business segments including “New Type of Urbanization”, “Industry-specific Investment”, “Overseas Investment”, “Fund Management” and “Integrated Circuit Investment”,to facilitate CDB capital as an international comprehensive and strategic investment platform. As the earliest domestic financial institution conducting private equity funds investment, CDB Capital has the most funds in portfolio and the largest asset under management in China. It well supports the healthy and rapid development of the Chinese private equity industry. Currently, CDB Capital has invested and managed about 100 funds, total size over RMB 500 billion. It is one of the most prestigious and influential brands in fund management in China.

For additional information contact:
Maria Medvedeva
Russian Direct Investment Fund
Director of External Communications
Tel: +7 495 644 34 14, ext. 2141
Mobile: +7 964 726 17 73
E-mail: mm@rdif.ru

Andrew Hayes / Yulianna Vilkos
Hudson Sandler
Tel: +44 (0) 20 7796 4133

Tony Han
Russia-China Investment Fund
Beijing, China
Tel.: +86 10 5762 9000
Fax: +86 10 57629111
dong.han@rcif.com

Yury S. Trofimov
Russia-China Investment Fund
Moscow, Russia
Tel.: +7 (495) 230-05-55 ext. 4243
Mob.: +7 (985) 765-13-12
yury.trofimov@rcif.com