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"The fund is well positioned to lead the way in the revitalization of key infrastructure in Russia, Kazakhstan, Ukraine and other CIS countries" Stephen Jennings, Renaissance Group |
Russia’s state development bank, Vneshekonombank, has become the cornerstone investor in the first private-sector infrastructure fund targeting projects in Russia and the Commonwealth of Independent States. VEB is committing $200 million to the Macquarie Renaissance Infrastructure Fund. MRIF is a joint venture between Russian investment bank Renaissance Group and Australia’s Macquarie Group. At the first close MRIF attracted a total of $530 million, with Macquarie and Renaissance each providing $50 million of seed capital. Other big investors in the fund include the International Finance Corporation and the European Bank for Reconstruction and Development, which have committed $100 million apiece. Kazakh development agency Kazyna Capital Management has made an initial commitment of $30 million, which will rise to $50 million once total MRIF commitments have reached the $750 million mark. MRIF will continue to raise capital during 2009 and 2010, and is targeting total investor commitments of more than $1 billion.
"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 modernization of the region’s infrastructure," says Renaissance Group’s chief executive, Stephen Jennings.