12 August 2009
Russia's State Development Bank, Vnesheconombank (VEB) and the Macquarie Renaissance Infrastructure Fund (MRIF/the Fund) today signed formal agreements for VEB to become the cornerstone investor in MRIF, the first major private fund dedicated to investing directly in infrastructure in Russia and other key CIS markets.
Following first close, MRIF plans to continue fundraising and seeking quality investments which will play a major role in modernising the region's infrastructure.
VEB will make a commitment of US$200 million to a special purpose vehicle which will invest in infrastructure projects together with MRIF, and be managed jointly by Macquarie Group and Renaissance Group. VEB joins other major investors and together they have committed US$530 million to the first close of the Fund.
VEB's agreement today follows commitments by the International Finance Corporation and the European Bank for Reconstruction and Development which have each agreed to make a US$100 million investment in the Fund. Macquarie Group and Renaissance Group have also each made a US$50 million commitment and the Kazakh development institution Kazyna Capital Management has made a US$30 million commitment, which will increase to US$50 million once total MRIF commitments have reached US$750 million.
The Fund 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.
"The Macquarie Renaissance Infrastructure Fund has successfully attracted more than half a billion dollars, and we continue to raise additional capital, to invest in the modernisation of the region's infrastructure. Given the many attractive investment opportunities and the scarcity of private capital available today, the fund is well positioned to lead the way in the revitalisation of key infrastructure in Russia, Kazakhstan, Ukraine and other CIS countries," said Renaissance Group CEO, Stephen Jennings.
"Governments in the CIS region have recognised the significant need to renew and expand infrastructure to facilitate economic growth. The Russian Government has highlighted this need, emphasising the potential role of the private sector in improving existing infrastructure and accelerating the development programme. Macquarie Renaissance is committed to being a key player in this development," said MRIF CEO, Andrew Cowley. Mr Cowley, Executive Director with Macquarie Group, also Co-Chairs the Fund alongside Bob Foresman, Deputy Chairman of Renaissance Capital.
MRIF will continue to raise capital during 2009 and 2010, and is targeting total investor commitments in excess of US$1 billion. A strong investment pipeline is already being evaluated, and further opportunities are anticipated.
Vnesheconombank is 100% owned by the Russian state, and acts as the Russian State Development Bank. Vnesheconombank's mission is to ensure Russian economic growth by means of stimulating investment activity, development of infrastructure, and the support of innovative technologies and Russian industrial exports. The bank was created in 2007 by the reorganisation of Vnesheconombank of the USSR.
The European Bank for Reconstruction and Development, owned by 61 countries and two intergovernmental institutions, aims to foster the transition from centrally planned to market economies from central Europe to central Asia.
The International Finance Corporation, part of the World Bank Group, fosters sustainable economic growth in developing countries by financing private sector investment, mobilising capital in the international financial markets, and providing advisory services to businesses and governments.
Kazyna Capital Management is a Kazakh development institution and a 100% subsidiary of Samruk-Kazyna. Its main objective is to improve overall investment and innovation activities in Kazakhstan by providing investments to foreign and Kazakh companies which implement investment projects including investment funds, in the form of private equity funds, infrastructure funds, venture capital funds and investment portfolio funds. In October 2008 Sustainable Development Fund Kazyna announced its merger with State Holding Samruk. The joint entity acts as Kazakhstan’s sovereign wealth fund.
NOTES TO EDITORS
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 26 countries. It employed approximately 12,700 people and had assets under management of US$170 billion at 31 March 2009.
About Renaissance Group
Renaissance Group is an independent group of investment banking, asset and wealth management, merchant banking, and consumer finance companies specializing in highopportunity emerging markets. Renaissance Group operates in Russia, Ukraine, Kazakhstan, Sub-Saharan Africa, the United Kingdom, the United States and Cyprus.
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