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During the 20th bilateral summit between China and the European Union, and in the presence of Premier Li Keqiang, the President of the European Council Donald Tusk and the President of the European Commission Jean-Claude Juncker, Silk Road Fund and European Investment Fund entered into the Memorandum of Understanding on Implementing the First Co-investment of the China-EU Co-investment Fund and Further Strengthening Cooperation (MoU) on 16 July 2018 to mark the commencement of the full operation of the China-EU Co-investment Fund (CECIF) .
The MoU has recognised the official launch of CECIF and confirmed the close of its investment in Cathay Midcap II, being the first investment of CECIF. Cathay Midcap II is committed to advancing the collaboration amongst businesses and enterprises in both China and the Europe and further forming business synergies and value creation.
Silk Road Fund and European Investment Fund have previously entered into a co-investment agreement in relation to CECIF. CECIF has a total commitment of EUR 500 million, of which Silk Road Fund and European Investment Fund have each committed an equal share. Silk Road Fund and European Investment Fund make joint decisions on the investments of CECIF. CECIF operates on a market oriented basis. It primarily invests in private equity and venture capital funds within Europe that target small and medium-sized businesses with favorable commercial prospects and conducive to the collaboration between China and Europe. CECIF aims to develop the synergies between the Belt and Road Initiative and the Investment Plan for Europe on a mutually beneficial and reciprocal basis.
Silk Road Fund is a medium to long-term development and investment fund. Through a variety of forms of investment and financings, primarily equity investment, it is dedicated to supporting infrastructure, resources and energy development, industrial capacity cooperation and financial cooperation in countries and regions involved in the Belt and Road Initiative to ensure medium and long-term financial sustainability and reasonable returns on investment.
European Investment Fund is part of European Investment Bank Group. Its central mission is to support Europe's micro, small and medium-sized business (SMEs) by helping them to access finance. European Investment Fund designs and develops ventures and growth capital, guarantees and micro-finance instruments which specifically target this market segment. In this role, European Investment Fund fosters EU objectives in support of innovation, research and development, entrepreneurship, growth, and employment. European Investment Fund implements the SME Window under the investment Plan for Europe.
