Moscow - 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. - Reuters