The Sino-China Investment Group will invest one billion euros in Serbia as part of the Belt and Road Initiative. The funds will be released through the Shanghai Stock Exchange.
The money will be used to fund projects in the area of transport, energy, telecommunications, agriculture and construction, some as public-private partnerships.
“The main focus is on transport, airports, ports, bridges, communications, water supply and drainage in urban and rural areas, as well as electricity supply, agriculture and basic assets necessary for the provision of non-material goods or services – for science, education, culture and healthcare,” said Sino-China Investment Group President Jin Frank Li.
The proposed public-private partnership model would include a combination of capital and bonds, and the possibility of using the international capital markets through an initial public offering. According to Mr Li the fund will be formed once all parties have completed their internal approval procedures, while in the mean time, they are looking for an appropriate pilot project in Serbia.
“The purpose of the new financing model is to achieve greater efficiency, reduce debt through asset reduction, and keep public borrowing for projects and market operations low,” added Mr Li.
Source; Emerging Europe
