BRICS aim to set up infrastructure fund, Russian investment fund says

MOSCOW Tue Jul 15, 2014 3:12pm IST

Related Topics

MOSCOW (Reuters) - The Russian Direct Investment Fund together with sovereign wealth funds from its peers among the BRICS developing nations aim to form a joint fund to invest in infrastructure projects, the RDIF said on Tuesday.

Leaders of Brazil, Russia, India, China and South Africa are holding an annual summit in Brazil this week where they are expected to sign a deal creating a $100 billion development bank and a currency reserve fund of the same amount.

The RDIF, a state-backed private equity fund worth $10 billion, invests alongside foreign partners and has previously attracted money from the Middle East and Asia.

"Representatives of leading financial institutions, BRICS sovereign wealth funds and RDIF’s international partners have given their complete support to the initiative," RDIF said in a statement.

If the negotiations are successful, the joint fund will become operational by the next BRICS summit which is scheduled to take place in Russia's city of Ufa in 2015, the Fund said.

No details on the potential capital of the new found have been given.

"The establishment of such a fund would do much to address the challenge of insufficient financing for infrastructure projects in BRICS countries, which each present a huge opportunity and experience similar issues in the delivery of infrastructure projects," Kirill Dmitriev, chief executive officer of the RDIF, said in a statement.

The money is to be invested in projects within the BRICS countries ranging from construction of roads, bridges and airports to municipal infrastructure.

(Reporting by Lidia Kelly; Editing by Hugh Lawson)

FILED UNDER:
Comments (0)
This discussion is now closed. We welcome comments on our articles for a limited period after their publication.

  • Most Popular
  • Most Shared

REUTERS SHOWCASE

Canada Shooting

Canada Shooting

Attack on parliament, killing of soldier stun Canada's capital.  Full Article 

Earnings Season

Earnings Season

Wipro sees rosier end to year as U.S. clients spend.  Full Article 

Business Climate

Business Climate

Fears for tough penalties grow as India cleans up business  Full Article 

New Email Service

New Email Service

Google launches new email service dubbed "Inbox".  Full Article 

DLF Appeals

DLF Appeals

DLF seeks interim relief from capital market ban  Full Article 

Falling Oil Prices

Falling Oil Prices

Indian consumers respond to softer oil, food prices  Full Article 

Book Keeping

Book Keeping

RBI fires warning shots on companies' lack of FX hedging.  Full Article 

Policy Repo Rate

Policy Repo Rate

Most external members suggested rate cut in RBI's Sept review.  Full Article 

Reuters India Mobile

Reuters India Mobile

Get the latest news on the go. Visit Reuters India on your mobile device.  Full Coverage