RDIF and Japan’s JBIC launch $1bn investment fund

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russia_moscow_170Russia’s $10bn private equity fund RDIF, state backed bank Vnesheconombank and Japan’s Bank of International Cooperation (JBIC) have agreed to launch a new $1bn investment platform.

The RDIF and JBIC will each contribute $500m to the vehicle, while Vnesheconombank is expected to contribute additional financing to the fund’s projects.

The fund will invest in the infrastructure, healthcare technology and alternative energy sectors. It will have a particular focus on investments in eastern Siberia and Russia’s Far East.

RDIF general director Kirill Dmitriev said, “RDIF pays a lot of attention to working with our partners in the East as we have a mutual interest in cooperating.

“One of the areas of such cooperation is Russia’s Far East region where we hope to develop infrastructure with our Japanese partners.

“The participation of private capital should make many projects in that strategically important region of Russia more efficient and profitable.”

Earlier this year RDIF backed the IPO of Moscow Exchange by investing $80m for a 4.5 per cent stake.

In March RDIF Director Sean Glodek told AltAssets that the fund planned to allocate $2bn this year, anticipating some major private equity firms will join it in deals expected to range from $100m to more than $1bn.

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