6th Apr 2009 07:00
LISTING AGREEMENT: CLAUSE 36
INFRASTRUCTURE FUND
JOINT VENTURE WITH MACQUARIE AND IFC
In terms of Clause 36 of the Listing Agreement, we advise that the State Bank of India (SBI) and Macquarie Group Limited (Macquarie) today announced the launch of the Macquarie-SBI Infrastructure Fund (MSIF), which will invest in infrastructure projects in India.
International investors have committed US$887 million to MSIF alongside a direct co investment commitment of US$150 million by SBI, bringing total capital raised to US$1.037 billion.
MSIF will continue to raise capital during 2009, and together with Indian domestic institutions, the total capital is anticipated to be between US$2 billion and US$3 billion.
Foreign institutions will invest through MSIF and Indian domestic institutions will invest through a domestic entity called the SBI-Macquarie Infrastructure Trust (SMIT). MSIF and SMIT will invest together into infrastructure projects in India.
MSIF is managed by the SBI and Macquarie joint venture, with the International Finance Corporation (IFC), the private financing arm of the World Bank, as a minority shareholder and cornerstone investor in MSIF. SMIT will also be managed by the joint venture. The share holding in the Joint Venture shall be 45:45:10 between SBI, Macquarie and IFC respectively.
Cont…….
SBI, Macquarie and IFC have committed US$150 million each to bring a total of US$450 million of sponsor commitments.
SBI and Macquarie bring a unique combination of local and international expertise to the joint venture. SBI is the largest project finance arranger in Asia and the largest lender in India with a deep knowledge of the country's infrastructure sector.
Macquarie is a leading owner and operator of infrastructure assets globally and brings to the joint venture its global expertise in the financing, development and operation of infrastructure assets.
Investments will be made in traditional infrastructure assets that generate long term identifiable cash flows, and that exhibit essential service characteristics.
These include roads, sea ports, airports, power generation, transmission and distribution, gas distribution, telecommunications and logistics businesses. Investments will include green-field projects as well as established operating businesses.
An investment pipeline has been identified and is under assessment. The sponsors anticipate further investment opportunities over the next two to three years, which corresponds with the investment period of MSIF.
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