The Hindu Business Line : Macquarie Bank, IFC to launch $1 b infra fund

Mumbai, Sept. 21 Australia-based Macquarie Bank Ltd Group proposes to sponsor a $1billion ‘Macquarie India Infrastructure Opportunities Fund,’ in association with the International Finance Corporation.

Subject to Macquarie and IFC Board and other internal approvals, the Macquarie India Infrastructure Opportunities Fund (MIIOF or the fund) is being created as a closed-end fund that will make equity and equity-like investments in infrastructure and infrastructure related assets in India and other countries in South Asia.

The fund is designed to invest in a diversified range of greenfield and brownfield assets in roads, airports, ports, power generation, power transmission and distribution, telecom towers, water and waste treatment, rail, and other infrastructure-related sectors.

The fund will be managed by a management company (Manager) to be jointly owned by Macquarie (90 per cent) and IFC (10 per cent). MIIOF will be a Bermudian-registered fund and will invest in India and other countries in South Asia.

The Macquarie Group will not guarantee performance or any capital returns in respect of an investment in the fund. The proposed IFC equity investment is up to $150 million.

IFC Web site says the project will address a key constraint for developers of private or public-private partnership infrastructure projects in India and other countries in South Asia - the availability of equity capital. “Given the large funding requirements and the long gestation periods of infrastructure projects, we anticipate that the fund will facilitate the development of infrastructure projects in the region,” it said.

The fund is also expected to impose market discipline on investee projects, leading to better alignment with demand for infrastructure services, more efficient management, and lower operating and maintenance costs.

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