CDP signs first agreement with Malaysian Sovereign Wealth Fund

CDP signs first agreement with Malaysian Sovereign Wealth Fund

A two-day event aimed at boosting economic, trade and industrial ties between Italy and the ASEAN countries1 has concluded with the signing of the first Memorandum of Understanding between the CDP Group and the Malaysian sovereign wealth fund. Cassa Depositi e Prestiti’s mission to Bangkok for the seventh round of High Level Dialogue On Asean Italy Economic Relations was focused on the growth of all territories involved.

“The four-year non-binding agreement that the CDP Group has made with the Malaysian fund Khazanah Nasional Berhad marks a key step in building stronger ties with international institutional investors,” said Francesco Mele, CDP's Investment Director and CEO of CDP Equity. ”Indeed, it will support both the potential growth of Italian firms in South-East Asia and the potential arrival of a new player with proven experience and strong capital to drive the growth of the Italian ecosystem.”

Many bilateral meetings and discussions took place. Among those present were Marcello Sala, Head of the Economy Department at the Ministry for the Economy and Finance, Deputy Minister Valentino Valentini from the Ministry of Business and Made in Italy, and teams from CDP, CDP Venture Capital, Simest and Fondo Italiano d’Investimento. Also present were representatives from the business, trade and investment sectors of the countries involved.

The support for the Forum confirms the priority role for the CDP Group of internationalisation activities, economic development of partner countries and support for crowding-in initiatives and the attraction of foreign investment to Italy, as also summarised in the 2022-2024 Strategic Plan, in order to pursue fair and sustainable development of the global economic, infrastructure and industrial fabric.

Laurent Franciosi, Head of International Market Development at Cassa Depositi e Prestiti (CDP), said: ”The CDP Group is absolutely committed to strengthening ties between Italy and ASEAN nations, and we take great pride in being a key partner of this Forum. As a National Promotion Bank and Development Finance Institution, we can foster sustainable growth initiatives to tackle climate change and support Italian and ASEAN firms that want to grow their trade and business ties by working together.”

The Memorandum of Understanding

The first MoU with the Malaysian sovereign wealth fund, Khazanah National Berhad, was signed by CDP Equity, CDP Venture Capital, Simest and Fondo Italiano di Investimento.

The non-binding, four-year agreement aims to strengthen relations between Italy and Malaysia. It will support Italian companies interested in expanding their business in the ASEAN region and promote the entry and presence of the Malaysian sovereign wealth fund Khazanah and its subsidiaries in the Italian market, including through potential investment opportunities in companies in CDP Equity's portfolio. The agreement also provides for the Malaysian fund to work with Fondo Italiano d'Investimento and CDP Venture Capital SGR to analyse potential collaboration opportunities with Italian companies and/or groups with significant activities in Europe or Malaysia.

It will also establish a joint working group, composed of representatives of both institutions, which will analyse, promote and coordinate potential co-investment opportunities.The CDP Group, in its role as a National Promotional Institution, has long focused on relationships with sovereign wealth funds, both bilaterally and through international groups that we are part of, like the International Forum of Sovereign Wealth Funds (IFSWF) and the One Planet Sovereign Wealth Fund Working Group (OPSWF), drawing on their desire to explore and support investment opportunities in the Italian market, while also ensuring support and access for Italian firms looking to grow overseas.

1Brunei, Cambodia, P  hilippines, Indonesia, Laos, Malaysia, Myanmar, Singapore, Thailand and Vietnam