SBI, RDIF collaborate to form $2 billion consortium
To encourage investments b/w the two nations, India’s State Bank of India (SBI) and Russian sovereign wealth fund Russian Direct Investment Fund (RDIF) came together to ink an MoU for setting up a $2 billion investment consortium. Both the groups would invest up to $1 billion each in the consortium.
How this consortium would work?
It will facilitate access to long-term capital in Russia and India and actively promote mutual investments. It will emphasize on projects accelerating towards higher purchasing power of the population, creation of value addition in the extraction and processing of natural resources as well as development of manufacturing businesses and service sector companies. As the consortium is supported by the government of the two nations, it will help in mitigating the risks that might arise from the global economic situation. With the partnership, the bank would have access to interesting and attractive projects from an investment point of view.
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