Macquarie (ASX:MQG) and Everbright (HKG:0165) to Jointly Establish Funds In China

Sydney, Aug 19, 2009 AEST (ABN Newswire) - Macquarie Group Ltd. (ASX:MQG) has entered into a joint venture with China Everbright Ltd (HKG:0165) to establish two funds to invest in infrastructure businesses in Greater China with a focus on core infrastructure.

The funds will be split between an international and domestic investor base and are looking to raise US$1.5 billion in aggregate, with a first close pegged for 2010, while Macquarie and Everbright will each contribute US$100 million.

The first fund will target non-China, non-retail investors looking to buy into the toll road, airport, renewable energy, water and waste, port and rail sectors. The second fund will be a domestic vehicle allowing renminbi investors and will be subject to Chinese government law. Each of the funds will have identical mandates and will be managed jointly.

The news comes just as diplomatic tension between the China and Australia remains high. However, the tie-up moves between companies from the two countries did not show any sign of slowdown.

"The combination of Macquarie's international infrastructure asset and funds management expertise and Everbright's China experience and know-how will create a powerful investment partnership in China, especially in generating attractive investment opportunities," said David Russell, Macquarie's Head of Private Equity Asia and Greater China.

Contact

Michelle Liang Asia Business News Asia Bureau Tel: +61-2-9247-4344 Email: michelle.liang@abnnewswire.net