13 December 2011
Moscow - Macquarie Renaissance Infrastructure Fund (MRIF or the Fund) has agreed to acquire an interest in GSR Energy Investments Ltd (GSR), an operator of heat and power generation and heat distribution facilities in Kolpino, St Petersburg region, Russia, for a total of $US83 million.
GSR supplies heat and electricity to over 100 industrial customers located in the Kolpino industrial and manufacturing centre, the home to a number of major industrial enterprises, and to the Kolpino residential area with a population of 144,000 people.
GSR is currently expanding its operations with the construction of a new energy efficient combined heat and power plant (CHPP), with a total capacity of 220 MW electrical power and 153 Gkal/h heat to meet increasing demand for heat and power from industrial customers. MRIF’s investment will finance part of this expansion project.
Chief Executive Officer of MRIF, Mr Damian Secen, said: "This is the second investment for MRIF and takes total Fund investments to more than $US200 million. GSR’s stable regulated revenues, coupled with an excellent growth profile due to the current expansion of the Kolpino industrial zone, make this investment particularly attractive for MRIF."
The new CHPP will address an anticipated power deficit in the area and as such will significantly contribute to the development of industrial enterprises in Kolpino and the local economy.
Mr Hasnen Varawalla, Co-Chairman of MRIF, said: "Investment in GSR is the first power plant investment in the MRIF portfolio. We are delighted that this investment has been secured by the Fund which is a result of the successful partnership between Renaissance and Macquarie and the strong support of the Fund’s other investors, Vnesheconombank, EBRD, IFC, EDB and Kazyna Capital Management."
NOTES TO EDITORS
About Macquarie Renaissance Infrastructure Fund
Macquarie Renaissance Infrastructure Fund is jointly managed by Macquarie and Renaissance. It is the first major private fund dedicated to investing directly in infrastructure in Russia and other key CIS markets, with $US630 million of investor commitments.
In 2010, MRIF invested $US125 million in Brunswick Rail Limited, and continues to actively seek quality investments which will make a significant contribution to modernising the region’s infrastructure.
MRIF’s investors include cornerstone investor Vnesheconombank (the Russian State development bank), the International Finance Corporation, the European Bank for Reconstruction and Development, Eurasian Development Bank, Kazyna Capital Management (a subsidiary of the Kazakh sovereign wealth fund), Macquarie and Renaissance.
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. It is estimated that a private financing need for infrastructure projects in Russia is $US28 billion per annum. MRIF is committed to being a key player in this development.
About Macquarie Group
Macquarie Group is a global provider of banking, financial, advisory, investment and funds management services. Macquarie Group Limited* is listed in Australia (ASX:MQG; ADR:MQBKY) 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’s Infrastructure and Real Assets division 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 now employs more than 15,000 people in over 28 countries. At 30 September 2011, Macquarie had assets under management of $US317 billion.
About Renaissance Group
Renaissance Group is an independent group of unified finance, investment and management companies specialising in creating value in high-opportunity emerging markets. The Group consists of investment banking, asset management, merchant banking, consumer credit, real estate and advisory businesses. Renaissance Group operates in 19 countries and regions, including Russia, Ukraine, Kazakhstan, Africa, Hong Kong, the United Kingdom, the United States and Cyprus.
For further information contact:
Karen Smith, Macquarie Group
+44 203 037 2420
Daria Khilenkova, Renaissance Group
+7 (495) 258-7777 (ext. 4839)
* None of the entities referred to in this document is an authorised deposit-taking institution for the purposes of the Banking Act (Commonwealth of Australia) 1959, and their obligations do not represent deposits or other liabilities of Macquarie Bank Limited ABN 46 008 583 542 ("MBL"). MBL does not guarantee or otherwise provide assurance in respect of these entities.