The Macquarie Group and Abu Dhabi Commercial Bank have launched a fund that is expected to raise up to USD1bn to invest in infrastructure opportunities in the Gulf Cooperation Council c
The Macquarie Group and Abu Dhabi Commercial Bank have launched a fund that is expected to raise up to USD1bn to invest in infrastructure opportunities in the Gulf Cooperation Council countries as well as the broader Middle East and North Africa region.
An initial cornerstone investment of USD500m has been made by Al Hail Holding, a prominent UAE-based investor and developer, and the fund – ADCB Macquarie Infrastructure Fund – is now welcoming other regional investors.
The fund, which has to date raised USD630m in capital commitments, is currently raising capital from both domestic and international institutional investors to make investments in infrastructure and infrastructure-like assets primarily in GCC countries.
It may also make investments in the broader Middle East and North Africa region. Its current investor base comprises institutions in Qatar, Kuwait and Korea, in addition to sponsor commitments from ADCB and Macquarie.
Eissa Al Suwaidi, chairman of ADCB, says: ‘A strong pipeline of investment opportunities has already been identified for ADCB Macquarie Infrastructure Fund on the back of Macquarie and ADCB’s unique deal-sourcing capabilities and the considerable demand for private infrastructure projects in the GCC countries.’
He said the fund intends to provide equity capital for investments in traditional infrastructure, such as: roads, water and wastewater utilities, ports, airports, district cooling, electricity transmission and distribution, gas distribution and social infrastructure.
The general manager of Al Hail Holding, Hamad Jassim Al Darwish, adds: ‘We believe that ADCB Macquarie Infrastructure Fund, which is supported by one of the largest and most experienced infrastructure finance teams in the region, is well positioned to benefit from the infrastructure deal flow in the GCC and for this reason we are pleased to be the cornerstone investor in the fund. ADCB Macquarie Infrastructure Fund offers a significant value proposition to Al Hail as an equity investor while allowing us to contribute to the long-term development of the region with real benefits for the community.’
