World Bank revealed it will not invest in the new Chinese company with a $500 million initial capital for infrastructure in Africa announced last Sept. 12.

Named China Overseas Infrastructure Development and Investment Corporation Ltd (COIDIC), the new infrastructure will invest and manage infrastructure projects from concept to feasibility studies as well as follow up financial close, a statement from the government of China revealed.

COIDIC’s shareholding includes various Chinese banks and companies. It comprises China Development Bank (CDB), China-Africa Development Fund (CADFund), China Gezhouba Group Overseas Investments, China Telecom Global Limited Changjiang Survey, Planning, Design and Research (CISPDR), China ENFI Engineering Corporation and HCIG Energy Investment.

New partners should join these shareholders next year.

COIDIC’s deputy boss, Nicholas Mitsos, said they want to show that “Chinese and entities from the West can team up to underwrite and construct essential public infrastructure in the developing world”.

“After these projects are completed investors and lenders can exit profitably. Exit targets include pension funds, insurance companies and other institutional investors worldwide that will want de-risked long-dated infrastructure assets yielding more than government bonds,” Mr Mitsos said adding that the Asian Infrastructure Investment Bank (AIIB) and the New Development Bank (NDB) - the development bank recently launched by BRICS members will be called to take part in financing of the projects.