BRICS investment fund likely to have $10 bln initial capital - source

FORTALEZA Brazil Tue Jul 15, 2014 10:47pm IST

Brazil's President Dilma Rousseff is pictured before the 6th BRICS summit in Fortaleza July 15, 2014.  REUTERS/Nacho Doce

Brazil's President Dilma Rousseff is pictured before the 6th BRICS summit in Fortaleza July 15, 2014.

Credit: Reuters/Nacho Doce

Related Topics

Border Security Force (BSF) soldiers ride their camels as they rehearse for the "Beating the Retreat" ceremony in New Delhi January 27, 2015. REUTERS/Ahmad Masood

"Beating The Retreat" Rehearsals

Rehearsals are on for "Beating the Retreat" ceremony which symbolises retreat after a day on the battlefield, and marks the official end of the Republic Day celebrations.  Slideshow 

FORTALEZA Brazil (Reuters) - The group of five BRICS emerging market countries is considering starting a joint infrastructure fund with initial capital of around $10 billion, a source close to the discussions told Reuters on Tuesday.

The fund, which is under negotiation and could become operational at the next BRICS summit in Russia next year, would be initially financed by the sovereign funds of Brazil, India, China, Russia and South Africa.

It could later allow for the participation of other sovereign wealth funds from other countries, said the source who declined to be named because negotiations are ongoing.

The money would be invested in infrastructure projects within the BRICS countries, including the construction of roads, bridges and airports.

Leaders of the BRICS nations are holding on Tuesday their annual summit in Brazil, where they are expected to sign a deal creating a $100 billion development bank and a currency reserve pool worth the same amount.

The Russian Direct Investment Fund, a state-backed private equity fund worth $10 billion, is leading talks with its BRICS peers on the new initiative, it said earlier on Tuesday.

Kirill Dmitriev, RDIF's chief executive officer, said the fund would help fill in the gap for long-term financing in BRICS countries. "It would be complementary to the BRICS' new development bank by providing equity to those projects," said Dmitriev on the sidelines of the summit.

The RDIF invests alongside foreign partners and has previously attracted money from the Middle East and Asia.

(Additional reporting by Lidia Kelly in Moscow; Editing by Walter Brandimarte, Meredith Mazzilli and Paul Simao)

FILED UNDER:
Photo

After wave of QE, onus shifts to leaders to boost economy

DAVOS, Switzerland - Central banks have done their best to rescue the world economy by printing money and politicians must now act fast to enact structural reforms and pro-investment policies to boost growth, central bankers said on Saturday.

Reuters Showcase

Vodafone Ruling

Vodafone Ruling

Government will not appeal Vodafone tax ruling   Full Article 

Indian Railways

Indian Railways

Private refiners compete with state firm to sell diesel to railways   Full Article 

Ranbaxy Results

Ranbaxy Results

Dec-quarter net loss widens on forex loss  Full Article 

Market Eye

Market Eye

Sensex, Nifty retreat from record highs on profit-taking.  Full Article 

Tech Talk

Tech Talk

Apple takes high road in China smartphone standoff with Xiaomi.  Full Article 

Business Strategy

Business Strategy

Uber scraps commissions for its New Delhi taxis.  Full Article 

Job Cuts

Job Cuts

Sony to cut 1,000 jobs in smartphone business - sources.  Full Article 

Reuters India Mobile

Reuters India Mobile

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