BIDV sets up fund with Russian partner

HA NOI — The Bank for Investment and Development of Viet Nam (BIDV) yesterday announced a deal with Russia's VTB to set up a multi-million dollar investment fund.

The US$500 million fund will focus on Viet Nam's mining, infrastructure and IT sectors, and exploit investment opportunities from Russian, Japanese, Korean and Middle Eastern investors.

In the first phase, which is expected to be launched at the end of 2011, the fund plans to raise about $100 million. VTB will inject $10 million, BIDV will pour in $5 million and the remainder will be raised through capital markets, according to Reuters.

Under the deal inked on Sunday, the banks will set up a joint venture company to manage and raise capital for the fund. BIDV will take responsibility for seeking investment opportunities in the Vietnamese market and will provide the fund with finance and banking services.

VTB will be in charge of marketing and raising the fund's capital. The deal, among other contracts inked during a visit to Ha Noi by Russian President Dmitry Medvedev, is expected to boost the trade relationship between the two countries with a view to raising the bilateral trade turnover to $3 billion in 2012. Eight-month turnover this year reached $1.17 billion. — VNS

Source: Vietnam News Agency

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