Sberbank sets up seed fund for infrastructure projects

Sberbank CIB, an investment arm of Sberbank, Russia’s largest national savings bank, has announced plans for this country’s first seed fund to invest in infrastructure project preparation. 

The new Sberbank fund is expected to invest in the preparation, launch and ongoing support of projects initiated by private-public partnerships (PPPs) and concession partners.

The savings bank will act as anchor investor in this sizable $176m fund, and will have a shareholding in the fund’s management company.

The new fund will focus on middle-to-large scale $147m-$1.5bn projects in transport, social, energy, IT/telecom and other infrastructure segments. Each project will be eligible for anything between $880K and $2+m for a period of up to 30 months.

The fund is expected to have a lifetime of six years, during which Sberbank is hoping to support more than 100 infrastructure projects. The fund will be fully capitalized by the end of 2018, the savings bank said.

InfraONE, a Russian investment company, has partnered with Sberbank in the fund project. The State Transport Leasing Company is also considering joining the effort. The new fund is expected to cooperate with federal and regional authorities, all sorts of government development agencies and any other stakeholders.