Eurasian Development Bank invests in Macquarie Renaissance Infrastructure Fund
Moscow, 21 December 2010 – The Eurasian Development Bank (EDB) has agreed to invest in the Macquarie Renaissance Infrastructure Fund (MRIF or the Fund). Through its $100mn commitment, EDB will bring the Fund’s total investor commitment to $630mn.
As part of the agreement, EDB becomes a shareholder of the Fund along with the International Finance Corporation, the European Bank for Reconstruction and Development, the Bank of Development and Foreign Trade (Vneshekonombank) of Russia, Кazyna Capital Management of Kazakhstan, Macquarie Capital Group and Renaissance Capital.
Founded by an intergovernmental agreement between the Russian Federation and the Republic of Kazakhstan, the EDB is an international financial institution that fosters economic growth and integration processes in the Eurasian region. MRIF is jointly managed by Macquarie Group and Renaissance Capital and offers investors the opportunity to gain diversified exposure to this growing infrastructure market, and play a major role in supporting the modernisation of the region’s infrastructure.
“The Fund and its shareholders are focused on infrastructure investment in Russia and other CIS countries to support the economic development in the region,” said Igor Finogenov, Chairman of the Executive Board of the EDB. “Our co-investors in MRIF are international and national development institutions and leading players in the infrastructure market. This skilled and like-minded group will play a leading role in directly investing in infrastructure projects and in supporting development of a deep, efficient pool of public and private capital for infrastructure investment in the region.”
Andrew Cowley, the CEO of MRIF said, ”We are very pleased to welcome EDB to the Fund. Governments in the CIS region have recognised the significant need to renew and expand infrastructure to facilitate economic growth, and private sector investment can play a strong role in accelerating the development programme. Working alongside our investors, Macquarie Renaissance is committed to being a key player in this development.”
“The addition of EDB to the Fund is an important development,” said Stephen Jennings, CEO of Renaissance Group. “EDB’s regional focus and mission is complementary to MRIF, and we look forward to working with the EDB team in the coming years.”
The Fund targets investments in energy (including power generation, distribution and heating networks), transport and communications (toll motorways, railways and related infrastructure, sea ports, airports and parking lots), housing and utilities (water, gas, sewage and social infrastructure). Projects in Russia will account for at least 50% of the total investments and projects in Kazakhstan for at least 20%.
The managers of MRIF are Macquarie Infrastructure and Real Assets (Europe) Limited and Renaissance Investment Management (UK) Limited.
NOTES TO EDITORS
Macquarie Renaissance Infrastructure Fund
Macquarie Renaissance is a joint venture between Macquarie Group and Renaissance Capital, with the aim of developing infrastructure advisory and fund management opportunities in Russia and the CIS. MRIF offers investors a unique opportunity to gain diversified exposure to this large and growing infrastructure market, leveraging Macquarie’s global leadership in the infrastructure sector and Renaissance’s depth of experience in the CIS region.
MRIF has attracted major investors including cornerstone investor Vnesheconombank (the Russian State development bank), the International Finance Corporation, the European Bank for Reconstruction and Development, Kazyna Capital Management (a subsidiary of the Kazakh sovereign wealth fund), Macquarie Group and Renaissance Group.
Governments in the CIS region recognise the significant need to renew and expand infrastructure to facilitate economic growth. MRIF is committed to being a key player in this development and is the first major private fund dedicated to investing directly in infrastructure in Russia and other key CIS markets. MRIF is actively seeking quality investments which will make a significant contribution to modernising the region’s infrastructure.
About Macquarie Group
Macquarie Group (Macquarie) is a global provider of banking, financial, advisory, investment and funds management services. Macquarie Group Limited is listed in Australia (ASX:MQG) and is regulated by APRA, the Australian banking regulator, as the owner of Macquarie Bank Limited, an authorised deposit taker. Through its specialist funds, Macquarie is an experienced investor in significant infrastructure and community assets, delivering important services including transport, roads, airports and utilities around the world. Founded in 1969, Macquarie operates in more than 70 office locations in 28 countries. It employs approximately 15,500 people and has assets under management of $306bn at 30 September 2010.
About Renaissance Group
Renaissance Group is an independent group of investment banking, asset and wealth management, merchant banking, and consumer finance companies specialising in high-opportunity emerging markets. Renaissance Group operates in Russia, Ukraine, Kazakhstan, Africa, Hong Kong, the United Kingdom, the United States and Cyprus.