The Bank for Investment and Development of Vietnam (BIDV) on Nov. 1 announced a deal with Russia 's VTB to set up a multi-million dollar investment fund.
The 500 million USD fund will focus on Vietnam '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 USD. VTB will inject 10 million USD, BIDV will pour in 5 million USD and the remainder will be raised through capital markets, according to Reuters.
Under the deal inked on Oct. 31, 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 Hanoi 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 USD in 2012. Eight-month turnover this year reached 1.17 billion USD./.
The 500 million USD fund will focus on Vietnam '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 USD. VTB will inject 10 million USD, BIDV will pour in 5 million USD and the remainder will be raised through capital markets, according to Reuters.
Under the deal inked on Oct. 31, 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 Hanoi 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 USD in 2012. Eight-month turnover this year reached 1.17 billion USD./.
