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Multicountry: CITIC Capital Pan-Eurasian Growth Fund

SUMMARY

STATUS
Approved
ECONOMY
Multicountry
SECTOR
Financial Institution
E&S CATEGORY
FI
PROJECT NUMBER
000217

FINANCING

PROJECT TYPE
Nonsovereign
APPROVED FUNDING
USD125.0 million
FINANCING TYPE
Stand-alone

TIMELINE

CONCEPT REVIEW
July 22, 2019
APPRAISAL REVIEW/FINAL REVIEW
October 23, 2019
FINANCING APPROVAL
December 12, 2019

OBJECTIVE

The objective is to mobilize private capital investments into infrastructure and other productive sectors in selected AIIB members via a fund with a market risk-adjusted return.

DESCRIPTION

The CITIC Capital Pan Eurasia Fund  is a closed-end private equity fund established to provide institutional investors with the opportunity to take advantage of rapidly growing economies and trade flows in Eurasian countries. The Fund focuses on resource efficiency, renewables, food and water safety, logistics, transportation and technology sectors in the region. The target fund size is USD500 million with a first closing in Q1 2020.

PROJECT FINANCING

For more information about project financing, please review the project summary.

ENVIRONMENTAL AND SOCIAL INFORMATION

AIIB's Environmental and Social Policy (“ESP”) is applicable to the Project, which has been placed in Category FI because it involves the provision of funds to CCPEF for further investment. After conducting prior review of the initial investments, AIIB will delegate the decision-making on the use of AIIB funds to CCPEF, including the selection, appraisal, approval and monitoring of investments in portfolio companies. AIIB will retain the right to review the selection of further investments by the Fund.

The Fund manager has an existing Environmental, Social and Governance (“ESG”) policy, which defines its approach to integrating ESG risks and value creation opportunities into investments made through its private equity funds. Many of the target sectors present opportunities to finance climate mitigation and/or adaptation (e.g. renewables, water). The Fund manager recognizes the increasing interest from investors in sustainable development outcomes, and AIIB will work with Fund to develop a framework for identifying climate finance opportunities.

Furthermore, the Fund manager is in the process of enhancing its ESG Management System to reflect the requirements of the ESP, including the development of guidance for each phase of the investment process: screening, due diligence, investment decision and monitoring and reporting. The updated ESG Management System will be subject to AIIB approval prior to the Fund manager’s use of AIIB’s funds.

The Fund will be required to create an external communication mechanism to periodically disclose its investments and to address third-party views, enquiries or concerns regarding its own ESG processes and outcomes, as well as ESG impacts and performances of its portfolio companies. Investees of AIIB’s financing will be required to disclose the ESG information on their subprojects and to establish appropriate subproject-level grievance redress mechanisms (“GRM”).

PROJECT TEAM LEADER

Thomas Walenta

Senior Investment Officer

thomas.walenta@aiib.org

 

BORROWER

N/A

IMPLEMENTATION AGENCY

CITIC Capital Holdings Limited

Fanglu Wang

Managing Partner

fangluwang@citiccapital.com

PROJECT DOCUMENTS

CLIENT/COFINANCING PARTNER DOCUMENTS

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