China-Europe Fund Management Limited
China-Europe Fund Management Ltd. (CEFM) is a joint venture between China, the European Union (EU) and the European Investment Bank (EIB). It was established in 2015 to help finance and advise on large-scale infrastructure investment projects in Central and Eastern Europe (CEE).
The limited liability company is based in Beijing, with offices in Turkey, Hungary and Romania. It has also established financing arms in China’s four largest banks. Its membership includes major Chinese corporates, Chinese financial institutions and Chinese policy banks, as well as leading European banking and financial institutions.
CEFM provides financing, consultation and advisory services, as well as project evaluation, feasibility studies, due diligence and risk assessment. It facilitates cooperation between European and Chinese counterparts in the financing, implementation and operation of CEE infrastructure projects.
CEFM has helped finance many flagship infrastructure projects in the region, covering transportation, energy and urban development sectors. It has set up four funds worth a combined three billion euros, with the four funds focusing on different areas as listed below:
The CEE-China Investment Fund, a 1 billion euro fund designed to support investments in energy, IT, transportation, infrastructure, renewable energy and other sectors.
The Central-East European Sustainable Energy Fund, a 1.5 billion euro fund that aims to promote clean energy, reduce greenhouse gas emissions and bolster climate resilience in the region.
The China-Europe Urban Investment Fund, a 500 million euro fund that provides financial assistance for well-identified urban infrastructure projects.
The North-South Connectivity Fund, a 500 million euro fund that helps with long distance transport links between the CEE region and China.
The funds target investments in the ten countries of the CEE region, namely, Albania, Bulgaria, Croatia, Czech Republic, Hungary, Poland, Romania, Serbia, Slovakia and Slovenia.
Overall, it is clear that CEFM has been largely successful in its mission of financing, promoting and supporting investments in CEE infrastructure. It has used its funds to provide much needed financing for a developing region and helped bridge the resource gap between the developed EU and the emerging economies in the CEE region.
Its partnership with European and Chinese counterparts has helped to make financing large-scale infrastructure projects easier, while its expertise and risk assessment services have helped to identify, evaluate and carry out high-impact investments.
CEFM has already achieved success in its endeavors and is likely to remain an important player in facilitating investments in the region for years to come.
