RDIF, RCIF and Guangdong Utrust agree key terms on Russia-China Greater Bay Area Fund

Press release, 26.11.2019

Beijing, November 26, 2019 - The Russian Direct Investment Fund (RDIF), Russia’s sovereign wealth fund, the Russia-China Investment Fund (RCIF) and Guangdong Utrust Investment Holdings (the investment fund for Guangdong province) announce the agreement of the key terms to establish the Russia-China Greater Bay Area Fund with $1 bn of target capital. The fund will aim to strengthen bilateral trade and economic ties, promote the expansion of Russian companies in China’s Guangdong province and support Guangdong enterprises “Going Out” to Russia.

The agreement was signed today by RDIF, RCIF and Guangdong Utrust Investment Holdings on the grounds of the 6th meeting of the Intergovernmental Russian-Chinese Commission for Investment Cooperation in Beijing.

Guangdong is China’s largest province in terms of GDP and the most important region in respect of trade cooperation with Russia. The joint fund will support further development of the strategic cooperation between Russia and the region and will facilitate the evolvement of the Greater Bay Area initiative The Greater Bay Area comprised of the two Special Administrative Regions of Hong Kong and Macao and nine municipalities in Guangdong province. The objectives of the initiative are to further deepen cooperation amongst Guangdong, Hong Kong and Macao, facilitate in-depth integration within the region and promote coordinated regional economic development.

Kirill Dmitriev, CEO of RDIF and Co-CEO of RCIF, said:

“Guangdong is one of China’s leading provinces in terms of economic performance and this fund creates great opportunities for Russian companies. The joint investment fund will support the development of bilateral relations and the entry of Russian companies into the Chinese market across the Greater Bay Area, unlocking the region’s potential to Russian products and technologies. Cooperation between RDIF, RCIF and Guangdong Utrust is developing steadily, and I am confident that we are moving in the right direction towards large-scale joint projects that will serve to further strengthen the partnership between Russia and China”.

Hu Bing, Co-CEO of RCIF, said:

“The Russia-China Greater Bay Area Fund will play an important role in the overall context of developing bilateral cooperation between Russia and China. We recognize the growing interest of Russian business in China and vice versa. The Greater Bay Area Fund will become an additional and effective tool to support their entry into one of the largest markets in Asia as well as to facilitate Chinese enterprises to collaborate with Russian partners for opportunities in Russia.”

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Russian Direct Investment Fund (RDIF) is Russia's sovereign wealth 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. Currently, RDIF has experience of the successful joint implementation of more than 70 projects with foreign partners totaling more than RUB1.5tn and covering 95% of the regions of the Russian Federation. RDIF portfolio companies employ more than 800,000 people and generate revenues which equate to more than 6% of Russia’s GDP. RDIF has established joint strategic partnerships with leading international co-investors from more than 15 countries that total more than $40bn. Further information can be found at www.rdif.ru

Russia-China Investment Fund (RCIF) is a private equity fund aimed to generate competitive returns by investing in projects that advance bilateral economic cooperation between Russia and China. Further information can be found at www.rcif.com

Guangdong Utrust Investment Holdings Co., Ltd. (Utrust) was founded in 1984 by the provincial government of Guangdong with the goal of providing high-quality financial services and ensuring full use of social capital for the development of Guangdong. Today Utrust represents a comprehensive financial service platform providing trust management, assets management, fintech, equity investment, private equity, financial lease, offshore finance and portfolio management. Utrust shareholdings include China Guangfa Bank, Guangdong Huaxing Bank, Pearl River Life Insurance, and Lianxun Securities. By the end of 2018 Utrust had total assets of RMB74bn ($10.7bn) with 16 wholly owned subsidiaries and total assets under management of over RMB520.5bn ($75.4bn).

For additional information contact:
Arseniy Palagin
Russian Direct Investment Fund

Press Secretary
Tel: +7 495 644 34 14, ext. 2395
Mobile: +7 916 110 31 41
E-mail: arseniy.palagin@rdif.ru

Andrew Leach / Maria Shiryaevskaya
Hudson Sandler

Tel: +44 (0) 20 7796 4133

Jessy Zheng
Russia-China Investment Fund

Beijing, China
Tel.: +86 10 5762 9000
Fax: +86 10 57629111
jie.zheng@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