CIC, RDIF eye $200m Russia investment

The two funds, together with a Middle Eastern SWF, intend to invest in a Russian agricultural processor.

China Investment Corp and an unnamed Middle East sovereign wealth fund have joined the Russian Direct Investment Fund (RDIF) in a proposed $200 million investment in Sodrugestvo, a Russian agricultural processing company, according to a statement.

Sodrugestvo is incorporated in Luxembourg and has operations in Russia, the Commonwealth of Independent States, Brazil, Northern Europe and the Middle East. It had $2 billion in revenues last year, the statement said. 

It is the leading supplier of soybean meal in Russia. In addition, it processes rapeseed, trades agricultural commodities and operates logistics, warehousing and port infrastructure business units. 

The investment will be used to finance geographical expansion, as well as further vertical integration.

“Sodrugestvo is a high-growth company, with revenues increasing eightfold since 2005,” said Kirill Dmitriev, CEO of RDIF, in the statement.

“The fact that RDIF established the consortium is a clear signal that international capital remains available for high quality Russian companies. RDIF’s investment will support expansion across both the supply chain and international markets to increase the company’s global competitiveness.”

RDIF is a $10 billion fund that was set up by the Russian government in 2011 to invest in Russia. Since inception, the fund has invested nearly $3.5 billion into Russian companies, of which just under $1 billion was invested by RDIF and more than $2 billion came from international co-investors, Maxim Arefyev, a director at RDIF, told Private Equity International in an earlier interview..

In Asia, RDIF has set up separate investment platforms with Korea Investment Corp, Japan Bank and State Bank of India. Late last year, RDIF said it was talking to Malaysia’s Khazanah Nasional and Australian funds.