Silk Road Fund, European Investment Fund sign MOU
Source: chinadaily.com.cn | Updated: 2018-07-16 19:02
The Silk Road Fund and European Investment Fund entered into a Memorandum of Understanding on Implementing the First Co-investment of the China-EU Co-investment Fund and Further Strengthening Cooperation on Monday to mark the commencement of the full operation of the China-EU Co-investment Fund.
The MoU recognizes the official launch of CECIF and confirmed the close of its investment in Cathay Midcap II, as the fund’s maiden investment. Cathay Midcap II is committed to advancing collaboration among businesses and enterprises in both China and Europe, and further forming business relationships and value creation.
The Silk Road Fund and European Investment Fund have previously entered into a co-investment agreement in relation to CECIF. CECIF has a total commitment of 500 million euros, of which the Silk Road Fund and European Investment Fund have each committed an equal share.
Both funds make joint decisions on the investments of CECIF. CECIF operates on a market-oriented basis. It primarily invests in private equity and venture capital funds within Europe that target small and medium-sized businesses, favoring those with strong commercial prospects and which are conducive to collaboration between China and Europe.
CECIF aims to develop links between the Belt and Road Initiative and the Investment Plan for Europe on a mutually beneficial and reciprocal basis.
The Silk Road Fund is a medium- to long-term development and investment fund. Through a variety of forms of investment and financing, primarily equity investment, it is dedicated to supporting infrastructure, resources and energy development, industrial capacity and financial cooperation in countries and regions involved in the Belt and Road Initiative to ensure medium- and long-term financial sustainability and reasonable returns on investment.
The European Investment Fund is part of the European Investment Bank Group. Its central mission is to support Europe’s micro, small and medium-sized business by helping them to access finance. European Investment Fund designs and develops ventures and growth capital, guarantees and micro-finance instruments which specifically target this market segment.
In this role, European Investment Fund fosters EU objectives in support of innovation, research and development, entrepreneurship, growth and employment. European Investment Fund implements the SME Window under the investment Plan for Europe.