Macquarie Capital Announces Agreement to Form New Investment Corporation Focused on Latin America Infrastructure Development
New York, 04 November 2014
- Macquarie Development Corporation ("MDC") will invest in pre-construction development stage infrastructure projects in Latin America
- Investment corporation with high-quality foundation shareholders will target a growing pipeline of investment opportunities sourced by Macquarie Capital in Latin America
Macquarie Capital, the corporate advisory, principal investing and capital markets arm of Macquarie Group (“Macquarie”) (ASX: MQG; ADR: MQBKY), today announced an agreement to form Macquarie Development Corporation (“MDC”), an investment corporation that will invest equity in pre-construction infrastructure development projects in Latin America. Macquarie Capital will partner with foundation shareholders China Communication Construction Company (“CCCC’) and Banco Modal and expects additional shareholders to participate in the coming months.
“We are excited to launch Macquarie Development Corporation,” said Nick Butcher, Head of Infrastructure for Macquarie Capital in the Americas. “MDC will utilize the unique expertise of Macquarie Capital in infrastructure and energy development across the Americas to capture what we believe is a growing pipeline of high-quality investment opportunities linked to the growth of these markets. We look forward to working with our partners to source, develop and finance much-needed infrastructure development projects.”
“A shortage of development capital continues to be a constraint on infrastructure development in many Latin American markets,” said Mark Ramsey, Head of Latin America Infrastructure for Macquarie Capital. “Macquarie Development Corporation will work with local developers in the pre-construction phases of development to make viable projects investment-ready for traditional infrastructure investors and funds. MDC represents a significant opportunity to help facilitate economic growth in the region.”
“Latin America is one of the most prospective infrastructure markets in the global arena. Currently, China Communication Construction Company is transforming its business model from a traditional EPC contractor into an infrastructure investor and developer. Joining MDC as one of the founding partners is part of this transformation. We believe that the forming of MDC will not only bring opportunities for CCCC to expand its business in the region, but also create tremendous opportunities for the development of infrastructure facilities in Latin America," said Ziyu Sun, Vice President of CCCC. "CCCC and Macquarie are strategic partners in global business development. Investing alongside their other MDC partners, Macquarie and CCCC will combine the two companies' strengths and deepen the collaboration in the global infrastructure market. May MDC have a bright and prosperous future.”
“This partnership is a clear indication that infrastructure projects in Latin America are becoming more and more attractive to foreign investors. There is a huge pent-up demand for investments in infrastructure and logistics in the region and countries like Brazil - among others - will greatly benefit from the arrival of industry leaders such as Macquarie and CCCC. We, at Modal, are very proud to be part of this new platform," said Cristiano Ayers, Partner at Banco Modal.
Macquarie Capital will support MDC with its significant global development expertise in energy and infrastructure, its extensive project financing expertise and its demonstrated capacity to source and assess development opportunities in Latin America.
About Macquarie Group
Macquarie Group (Macquarie) is a global provider of banking, financial, advisory, investment and funds management services. Macquarie’s main business focus is making returns by providing a diversified range of services to clients. Macquarie acts on behalf of institutional, corporate and retail clients and counterparties around the world. Founded in 1969, Macquarie operates in more than 70 office locations in 28 countries. Macquarie employs over 14,000 people and has assets under management of $425 billion (as of September 30, 2014).
Macquarie Capital comprises Macquarie Group’s corporate advisory, capital markets and principal investing capabilities. Macquarie Capital’s expertise spans a variety of industry sectors including telecommunications, media, entertainment, gaming, financial institutions, industrials, energy, resources, real estate, infrastructure, utilities and renewables.
For more info, visit www.macquarie.com/us and www.macquarie.com/whiteboard.
China Communications Construction Company (CCCC) is one of the global fortune 500 companies based in China. CCCC and its subsidiaries are principally engaged in the investment, design and construction of transportation infrastructure, dredging and heavy machinery manufacturing. CCCC’s operations span a range of infrastructure subsectors, including ports, transport, civil works design and construction, capital and reclamation dredging, container cranes, heavy marine machinery, large steel structure and road machinery manufacturing, international project contracting and import and export trading services. CCCC is the largest port construction and design company in China, a leading company in road and bridge investment, design, and construction, a leading railway construction company, the largest dredging company (in terms of capacity) in the world. CCCC generated revenues of US$54.6bn in fiscal year 2013.
For more info, visit www.ccccltd.cn.
About Banco Modal
Banco Modal (Modal) is a Brazilian investment bank that, since opening in 1995, has stood out by providing its clients with a vast array of niche financial products and services. With over 200 employees, Modal currently operates out of its headquarters in Rio de Janeiro and a branch in São Paulo, offering full coverage of the Brazilian corporate market.
Modal has significant experience in advising and investing across different sectors in Latin America including consumer, energy, oil & gas, real estate, infrastructure, utilities, and renewables. In addition to its investment banking practice, Modal is currently active in private equity, merchant banking, corporate banking, wealth and asset management services, where total assets under management exceed R 8 billion (as of August 30, 2014).
For more info, visit http://www.bancomodal.com.br/.