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MARKETS & INVESTING | Tony Chua, Hong Kong

China Everbright and Macquarie’ infrastructure fund reaches US$729mn

Macquarie Everbright Greater China Infrastructure Fund will continue to raise capital throughout 2011 and 2012 from international and domestic investors.

Macquarie Group Limited (“Macquarie”) and China Everbright Limited (“CEL”) on Tuesday announced the first close of the Macquarie Everbright Greater China Infrastructure Fund (“MEGCIF”), which will invest in core infrastructure projects in the Greater China Region. MEGCIF has achieved total initial commitments of US$479 million from leading international institutional investors from Europe, North America and Asia including PGGM, the second largest pension asset manager and pension administrator in the Netherlands, and the Korean Teacher's Credit Union, Korea's second largest pension plan. Macquarie and CEL have also each made a US$50m commitment (US$100m in total) as sponsors of the fund.

In addition, MEGCIF will have access to an additional US$250 million for co-investments. MEGCIF will target Greater China core infrastructure opportunities, primarily in the toll road, airport, renewable energy, wastewater, port and rail sectors. These sectors in China are classified as “foreign investment encouraged” under the guidelines published by the Ministry of Commerce and the National Development and Reform Commission, the key national regulators.

MEGCIF will continue to raise capital throughout 2011 and 2012 from international and domestic investors, with the final closing expected to occur in 2012. “CEL and Macquarie bring a strong combination of local and international infrastructure asset and funds management expertise to the joint venture”, said Mr Chen Shuang, Chief Executive Officer of CEL. “MEGCIF is uniquely placed to access attractive investment opportunities, leveraging CEL’s in-depth experience of China and Macquarie’s global leadership in the infrastructure sector”, added Mr Chen. 

Mr Ben Way, Managing Director of Macquarie Infrastructure and Real Assets said: “We are very pleased with the strong investor support for MEGCIF. Raising nearly half a billion dollars for a first close we believe is a strong endorsement of our strategy, team and the distinctive opportunities that exist for infrastructure investors in China”.

“Importantly, we have identified a strong and growing pipeline of attractive investment opportunities for the fund, with potential investments in a variety of sectors, such as renewable energy and transport, currently under detailed review”, added Mr Way.

Macquarie is the largest infrastructure fund manager globally, with over 30 funds managing 97 infrastructure assets across 23 countries as of 31 March, 2011. With US$92 billion of infrastructure assets under management globally, including China, India, Mexico, Africa and Russia, MEGCIF continues Macquarie's development of emerging market infrastructure funds, according to a China Everbright report.

Currently, CEL manages 11 funds, reaching the fair value of assets to approximately HK$15 billion. Built upon the solid business foundation, the investment teams of CEL will further explore lucrative and potential projects, aiming to expand its AUM size and maximise shareholder value. 

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