SBI, Macquarie launch infrastructure fund

Written by Agencies | Mumbai | Updated: Apr 6 2009, 19:06pm hrs
Public sector State Bank of India and Australia-based Macquarie Group launched Macquarie-SBI Infrastructure Fund and have raised a total of USD 1.037 billion for the purpose.

International investors have committed USD 887 million to MSIF (Macquarie-SBI Infrastructure Fund) alongside a direct co-investment commitment of USD 150 million by the SBI, bringing total capital raised to USD 1.037 billion, a company release stated.

The fund will invest in infrastructure projects such as roads, seaports, airports, power-generation, transmission among others. It will include greenfield projects as well as established operating businesses, the release said.

Investments will be made in traditional infrastructure assets that generate long-term identifiable cash flows and that exhibit essential service characteristics, it added.

MSIF will continue to raise capital during 2009 and together with Indian domestic institutions, the total capital is anticipated to be between USD two billion and USD three 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, the release said.