A consortium of investors including the Russian Direct Investment Fund (RDIF), Russia’s sovereign wealth fund, and a group of leading Middle Eastern funds, have announced the finalization of terms to participate in the construction project for the Startup Facility No. 4 of the Central Ring Road (СKAD-4).
Following the agreed terms of the transaction, the consortium will provide mezzanine and equity financing of at least RUR 1bln. The consortium’s stake in the concessionaire for the construction of СKAD-4 will be 40%.
The financial closure of the transaction is tied to the adoption by the Government of the Russian Federation of a non-regulatory act setting 2021 as the deadline for the implementation of the СKAD-4 project.
The Eurasian Development Bank is joining RDIF on the deal and the two sides have been cooperating successfully on the СKAD-3 project.
It is expected that in the 3rd quarter of 2019 the project will also be joined by ANAS, the leading Italian state road management company.
Kirill Dmitriev, CEO of the Russian Direct Investment Fund (RDIF), said: “The RDIF’s ability to attract investors from across the globe to СKAD-4 has helped to establish the project’s international status. The construction of the fourth section represents an important contribution to the implementation of the Comprehensive Plan, for the Modernization and Expansion of Trunk Infrastructure, which will encourage trade growth and create additional logistical opportunities for Russian companies”.