THE SILK ROAD FUND
Established in Beijing on December 29, 2014 with the purpose of providing financial support for business and economic cooperation and connectivity within the Belt and Road Initiative, the Silk Road Fund has a total capital of $ 40 billion, of which 10 billion have already been paid as follows:
- 65% State Administration for Foreign Exchange (SAFE)
- 15% China Investment Corporation
- 15% Export-Import Bank of China
- 5% China Development Bank
The Investment Committee is the supervisory body of the fund, it is responsible for each project’s action plan.
Sectors and areas of interest: infrastructure, energy, industrial and financial cooperation in Asia, Europe and America.
FUNDED PROJECTS:
June 2017: the Silk Road Fund and the European Investment Fund launch a new fund “China-EU Co-Investment Fund”, which should provide 500 million euros through equity investments across Europe.
April 2017: Atlantia sell 10% of Autostrade per l'Italia. 5% to the Allianz Capital Partners consortium on behalf of Allianz Group (74%), Edf Invest (20%) and Dif Infrastructure Iv (6%) and the remaining 5% stake to the Silk Road Fund.
January 2017: Acquisition of 10% stake of PJSC SIBUR Holding, Russia's largest integrated processing and petrochemical company.
December 2016: Dubai Hassyan's 'clean coal' project in the United Arab Emirates with a total value of $ 3.4 billion through the Hassyan Energy Company, a joint venture between Dewa (Dubai Electricity & Water Authority, 51%) and a consortium that includes Acwa Power, Harbin Electric and the Silk Road Fund (49%)
March 2016: Yamal LNG project, joint venture of NOVATEK (50.1%), TOTAL (20%), CNPC (20%) and Silk Road Fund (9.9%), in the Yamal peninsula. Located above the Arctic Circle, it uses the resources of the South Tambey field which, according to the PRMS standards, are estimated at 926 billion cubic meters. This is an integrated project that includes the construction of a LNG plant of approximately 16.5 million tons per year and transport infrastructure, including a seaport and Sabetta airport.
December 2015: Silk Road Fund invested $ 2 billion for the creation of China-Kazakhstan Production Capacity Cooperation Fund.
June 2015: the Silk Road Fund concluded an investment agreement with Chemchina for 25% stake of CNRC International Holding (HK) Limited, a special purpose vehicle created to carry out the acquisition of Pirelli.
April 2015: Karot hydropower project in China-Pakistan corridor was the first investment of the Silk Road Fund. The Karot Hydropower project is a run-of-river project, which uses 720MW natural gas flow for the production of hydroelectric power in the China Pakistan Economic Corridor (CPEC), it should be built on the Jhelum River in the district of Rawalpindi, Pakistan. It will be developed by Karot Power Company (KPCL), a special purpose vehicle, of which the China Three Gorges South Asia Investment (CSAIL) holds a majority stake. Silk Road Fund Co signed a memorandum of understanding (MoU) with China Three Gorges Corp and the Pakistan Private Power and Infrastructure Board for funding the project. Export-Import Bank of China leads the consortium of lenders for the project.