The Russian Direct Investment Fund (RDIF) has reportedly chosen partners to invest in state-controlled Rostelecom’s government-ordained broadband network rollout in rural areas.
Australian fund Macquarie, UAE fund Mubadala and the Kuwait Investment…
The Russian Direct Investment Fund (RDIF) has reportedly chosen partners to invest in state-controlled Rostelecom’s government-ordained broadband network rollout in rural areas.
Australian fund Macquarie, UAE fund Mubadala and the Kuwait Investment Authority are likely join RDIF in helping to fund the project, approved by the government this summer, Russian newspaper Vedomosti reported.
RDIF is a US$10bn fund created by the government to make equity investments, primarily in the local economy.
The project, to cost an estimated Rbs67.5bn (US$1.62bn), is set to see Rostelecom extend high-speed broadband services to more than four million extra people in rural areas.
The RDIF, which has a 1.04% direct stake in Rostelecom’s share capital, and co-investors will set up a joint venture which will provide the Moscow-based telco with loans for the project, the report stated.
Russian funds for the project will ultimately come from the Universal Service Fund, established to help develop Russia’s telecoms infrastructure, according to the report.
Rostelecom and the RDIF were not immediately available for comment.
