
RCIF buys 42% stake in RFP Group
The Russia-China Investment Fund (RCIF) has acquired a 42% stake in forestry holding company Russian Forest Products Group (RFP).
The capital provided for the GP's acquisition of the 42% stake will be used to back RFP's strategy to develop value-added wood processing. RFP aims to open a new manufacturing facility. Moreover, the capital injection – as well as debt financing – will be used to open a further sawn-wood plant by 2015.
The GP invested in RFP as it aims to introduce modern forestry technology and create new jobs in Russia's far east. Furthermore, RCIF seeks to improve RFP's operations, financing and corporate governance as part of the transaction.
RCIF is a joint private equity fund set up by the Russian Direct Investment Fund (RDIF), one of the Russian government's investment vehicles, and China Investment Corporation (CIC), China's sovereign wealth fund. RCIF manages around $3-4bn, with $1bn each provided by RDIF and CIC, as well as $1bn provided by other investors. Russia's state development bank Vnesheconombank is the fund's strategic partner.
RCIF promotes cross-border transactions between China and Russia, aiming to strengthen both economies with investments in infrastructure, transportation, utilities, real estate, agriculture, forestry, business services, manufacturing, TMT, healthcare and natural resources.
Company
RFP is a forestry holding company based in Khabarovsk Krai. The firm manages 5 million hectares of forest, harvesting more than 4.6 million cubic meters every year.
RFP claims to be the largest exporter of forestry products in the Asia-Pacific region. RFP manages 10% and 15% of all wood exports to China and Japan respectively.
The group was founded in 2005 and currently employs more than 6,000 staff.
People
Kirill Dmitriev is CEO of RDIF and co-CEO of RCIF. Hu Bing is also co-CEO of RCIF.
Latest News
Stonehage Fleming raises USD 130m for largest fund to date, eyes 2024 programme
Sponsor acquired the public software group in July 2017 via the same-year vintage Partners Group Global Value 2017
Stonehage Fleming raises USD 130m for largest fund to date, eyes 2024 programme
Czech Republic-headquartered family office is targeting DACH and CEE region deals
Stonehage Fleming raises USD 130m for largest fund to date, eyes 2024 programme
Ex-Rocket Internet leader Bettina Curtze joins Swiss VC firm as partner and CFO
Stonehage Fleming raises USD 130m for largest fund to date, eyes 2024 programme
Estonia-registered VC could bolster LP base with fresh capital from funds-of-funds or pension funds