23 August 18

European Investment Bank (EIB) cooperates with China with new €500 million Silk Road Fund equity investment initiative

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At the EU-China summit June 2, 2018, the European Investment Fund and the Silk Road Fund signed a Memorandum of Understanding that outlines new strategic cooperation to support equity investment across Europe. The China-EU Co-Investment Fund is expected to provide €500 million, jointly backed by the European Investment Fund and the Silk Road Fund, to support equity investment.

The agreement to establish the China-EU Co-Investment Fund was signed at the 19th European Union-China Summit in Brussels in the presence of the Premier of the People’s Republic of China, Li Keqiang, President of the European Commission, Jean-Claude Juncker, and the President of the European Council, Donald Tusk.

“The European Investment Bank Group works with Chinese partners to support transformational investment around the world that reflects our shared recognition of the importance of sustainable development. The new China-EU Co-Investment Fund will build on the strong spirit of partnership between Europe and China and I wish all involved the best of success.” highlighted Jonathan Taylor, European Investment Bank Vice President responsible for East Asia.

Creation of the China-EU Co-Investment Fund will help to further develop synergies between China’s Belt and Road initiative and the Investment Plan for Europe, the so-called “Juncker Plan”, the European Union’s strategy to mobilise €315 billion of new public and private investment across Europe.

The European Commission and China’s National Development and Reform Commission have played an important role in supporting discussions which led to the signature of the Memorandum of Understanding. Today’s signature follows the commitment made by China at the High-Level Economic and Trade Dialogue in 2015 to examine opportunities to contribute to the Investment Plan for Europe and enhance cooperation with the EU on investment issues generally. The initiative would complement the SME window of the Juncker Plan’s European Fund for Strategic Investments (EFSI), which is already expected to facilitate access to finance for some 416,000 small businesses across Europe.

“The China-EU Co-Investment Fund will bring together unique financial and technical expertise from the European Investment Fund and the Silk Road Fund. This exciting new initiative will strengthen investment into private equity and venture capital funds to support growing companies across Europe in the years ahead,” confirmed Pier-Luigi Gilibert, Chief Executive of the European Investment Fund.

Following today’s signature of a Memorandum of Understanding between the European Investment Fund and the Silk Road Fund, it is envisaged to establish the China-EU Co-Investment Fund in the coming months.

The new initiative reflects the broad cooperation between the European Investment Bank Group and Chinese partners supporting climate-related investment across China, development of green bonds in cooperation with the People’s Bank of China and working with China-based international financial institutions.

Background information:

The European Investment Bank (EIB) is the long-term lending institution of the European Union owned by its Member States. It makes long-term finance available for sound investment in order to contribute towards EU policy goals.

Source: PortsEurope

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