OREANDA-NEWS. On 19 August 2009 was announced, that Russia’s State Development Bank, Vnesheconombank (VEB) and the Macquarie Renaissance Infrastructure Fund (MRIF/the Fund) today signed formal agreements for VEB to become the cornerstone investor in MRIF, the first major private fund dedicated to investing directly in infrastructure in Russia and other key CIS markets.

Following first close, MRIF plans to continue fundraising and seeking quality investments which will play a major role in modernising the region’s infrastructure.

VEB will make a commitment of USD 200 million to a special purpose vehicle which will invest in infrastructure projects together with MRIF and be managed jointly by Macquarie Group and Renaissance Group. VEB joins other major investors and in total they have committed USD 530 million to the first close of the Fund.

VEB’s agreement today follows commitments by the International Finance Corporation and the European Bank for Reconstruction and Development which have each agreed to make a USD 100 million investment in the Fund. Macquarie Group and Renaissance Group have also each made a USD 50 million commitment and the Kazakh development institution Kazyna Capital Management has made a USD 30 million commitment, which will increase to USD 50 million once total MRIF commitments have reached USD 750 million.

The Fund offers investors a unique opportunity to gain diversified exposure to this large and growing infrastructure market, leveraging Macquarie’s global leadership in the infrastructure sector and Renaissance’s depth of experience in the CIS region.

"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 modernisation of the region's infrastructure. Given the many attractive investment opportunities and the scarcity of private capital available today, the fund is well positioned to lead the way in the revitalisation of key infrastructure in Russia, Kazakhstan, Ukraine and other CIS countries," said Renaissance Group CEO, Stephen Jennings.

 “Governments in the CIS region have recognised the significant need to renew and expand infrastructure to facilitate economic growth. The Russian Government has highlighted this need, emphasising the potential role of the private sector in improving existing infrastructure and accelerating the development programme. Macquarie Renaissance is committed to being a key player in this development,” said MRIF CEO, Andrew Cowley. Mr Cowley, Executive Director with Macquarie Group, also Co-Chairs the Fund alongside Bob Foresman, Deputy Chairman of Renaissance Capital.

MRIF will continue to raise capital during 2009 and 2010, and is targeting total investor commitments in excess of USD 1 billion. A strong investment pipeline is already being evaluated, and further opportunities are anticipated.