Memorandum of understanding on investing in Macquarie Renaissance infrastructure fund signed

Today, 7 June, a Memorandum of Understanding was signed at the XII St. Petersburg International Economic Forum by the State Corporation Bank of Development and Foreign Trade (Vneshekonombank), the Eurasian Development Bank (EDB), Кazyna Capital Management, Renaissance Capital Holding Limited and Macquarie Capital Group Limited.

In this Memorandum, Vneshekonombank, EDB and Кazyna Capital Management agreed to invest in the joint Macquarie Renaissance Infrastructure Fund (MRIF).

The initial size of MRIF will be $1-1.5 billion, with the expected contributions by Vneshekonombank ($200 million), EDB (up to $200 million) and Kazyna ($100 million).

According to the Memorandum, MRIF will make portfolio investments in infrastructure projects in CIS countries, of which at least 50% must be delivered in Russia. MRIF-funded projects will be aimed at overcoming infrastructure-related barriers to economic development, e.g. in the energy, transport, housing and utility sectors, encouraging innovations, enhancing the efficiency of natural resources management, and improving the environmental situation.

The Memorandum is expected to facilitate co-operation in the financing of infrastructure projects. The terms and size of Vneshekonombank’s contribution to MRIF will be determined by Vneshekonombank’s collegial bodies in the near future.

EDB will initiate similar approval procedures in its Council which now comprises authorised representatives of EDB’s founders, the Russian Federation and the Republic of Kazakhstan.