RDIF, Japan launch $1 bln joint fund; first deal in pharma

Interfax, 05.09.2017

VLADIVOSTOK. Sept 5 (Interfax) - During the Eastern Investment Forum in Vladivostok, Russia and Japan will formally conclude an agreement reached earlier to create a joint investment fund.

"Tomorrow [September 6] at the forum we will sign the agreement on creation of the Russia-Japan fund. Work on the fund has been underway a long time, but now the deal is all ready and tomorrow we will launch the Russia-Japan fund on a parity basis with $1 billion in capital," RDIF chief Kirill Dmitriev said in an interview with Interfax.

"Our goal is to make it so that the fund maximally quickly begins working and investing. We hope the first deal will be finalized in the course of a month," Dmitriev said.

Japan Bank for International Cooperation (JBIC) is the partner in the pilot deal that has been prepared, he said.

"Until recently, JBIC did not invest in equity and provided only loan financing. Literally one year ago at the legislative level JBIC acquired the ability to invest in shareholder capital. We are focused on raising funds for shareholder capital, because there is plenty of loan financing in Russia, but not enough investment in equity. Therefore, JBIC is a very important and significant partner for working on the Japanese market, with experience working around the world, with ties with Japan's big business. We are an important partner for JBIC, interacting with practically all of Russian big business, as well as with smaller Russian companies," Dmitriev said.

The fund's first deal will be investment in the pharmaceutical sector, he said.

"We are also counting on investment via this fund in medicine, transport infrastructure, aquaculture - those areas where Japan has a lot of expertise," he said.