LI DONGMEIMay 29, 2018 — 12:52 HKT
CITIC Capital Silk Road Fund, a pan-Eurasia themed fund managed by CITIC Capital Holdings Limited, said it had recently completed its investments into Shanghai Railink International Intermodal Logistics and Atasu Group respectively.
Railink and Atasu are logistics services companies serving the growing trades between China and Europe via Central Asia and Kazakhstan.
CITIC Capital Silk Road Fund investments will support further development of logistics service networks, as well as serving as capital expenditure for both companies. No financial details were disclosed in an announcement released today.
In addition to the investment, Atasu also received long-term debt financing from the European Bank of Reconstruction and Development, according to the announcement.
Railink and Atasu provide complementary services to companies based across China, Central Asia, and Europe, all of which are key regions under China’s Railway Express development project.
The investments seek to unlock further synergies between both businesses, leveraging each company’s strengths in its respective markets to provide a more comprehensive suite of services.
"CITIC Capital has been an early mover seeking to unlock the synergies between China and its trading neighbors," said Fanglu Wang, Managing Partner of CITIC Capital Silk Road Fund. "The transport and logistics service sector is a key element in regional commercial exchange. The migration of production capacity from China’s coastal to inland regions, increasing demand from pan-Eurasian countries, as well as the rapid growth in the China-Europe rail cargo volume have together provided tremendous investment opportunities from both ends."
Wang added that the firm will keep looking for investment opportunities in this space.
CITIC Capital Silk Road Fund is a pan-Eurasia themed fund managed by CITIC Capital with a focus on energy and resources efficiency, food and water safety, as well as transport and logistics services.
Since 2010, the fund is now targeting broader markets in the Commonwealth of Independent States region, as well as Eastern Europe and Southeast Asia. The fund is sponsored by CITIC Group as a cornerstone investor