Macquarie Bank and Development Bank of Japan establish Japan Infrastructure Group

02 March 2004

Macquarie Bank Ltd and Development Bank of Japan today announced the establishment of Japan Infrastructure Group (JIG), a Japanese infrastructure investment company.

JIG is Macquarie Bank’s first infrastructure investment in Japan and will have a mandate to invest in Japanese infrastructure assets.

JIG’s initial investment is the acquisition of the Hakone Turnpike, a toll road in the Kanagawa prefecture southwest of Tokyo, from Tokyu Corporation.  The road will be acquired by Hakone Turnpike Limited (HTPL) and funded by limited recourse loans provided by a syndicate of banks including Bank of Tokyo-Mitsubishi, Sumitomo Trust Bank and Development Bank of Japan and equity from JIG.

HTPL will own and operate the road under a perpetual licence from the Ministry of Land, Infrastructure and Transport.  The road is 15.8 km long and connects Odawara in Kanagawa Prefecture to Hakone and the central Izu Peninsula.

The acquisition price of the Hakone Turnpike is ¥1.2 billion ($A15 million). It is the first foreign equity investment in a Japanese toll road.

Macquarie Bank’s Head of Investment Banking Nicholas Moore said the establishment of JIG will be a catalyst for further opportunities in Japan, in line with the leading global infrastructure business Macquarie has established.

“The acquisition of the Hakone Turnpike provides Macquarie Bank with an affordable  entry to the Japanese market with minimum outlay of capital by the Bank.  We see significant infrastructure investment opportunities in Japan, which has a large amount of infrastructure which is well-planned and well-maintained with efficient systems,” he said.

JIG will seek to invest in Japanese infrastructure assets in the transport and energy sectors, as well as other essential infrastructure.  It is planned that, in the future, JIG will seek commitments from financial institutions and pension funds to give Japanese investors the opportunity to invest in a range of infrastructure projects.

Development Bank of Japan is wholly-owned by the Japanese Government and has a mandate for financing economic and social development projects in the country.  DBJ is an active participant in Japanese infrastructure finance.

Macquarie has over A$16 billion in equity funds under management in infrastructure worldwide. Infrastructure investments managed by Macquarie include assets in the transportation, water, telecommunications and energy sectors. 

Matthew Russell
Public Relations
Macquarie Bank Limited
Tel: (612) 8232 4102
Mobile: (614) 1069 9532

Erica Sibree
Investor Relations
Macquarie Bank Limited
Tel: (612) 8232 5008
Mobile: (614) 1302 6309