EBRD Commits Up To $100M In Russia-based Infrastructure Fund

JUNE 5, 2009. Wall Street Journal

The European Bank for Reconstruction and Development is going to invest up to $100 million in the first infrastructure fund set up to target projects in Russia, Kazakhstan and Ukraine, the bank said Friday.

The EBRD’s announcement at Russia’s chief economic event of the year, the St. Petersburg Forum, follows a decision of Russia’s fully state owned Vnesheconombank, or VEB, to invest $200 million in the Macquarie Renaissance Infrastructure Fund. The International Finance Corporation also committed $100 million and Kazyna Capital Management, a subsidiary of Kazakhstan’s sustainable development fund, $30 million, EBRD said.

The Macquarie Infrastructure Fund was set up in 2008 by Macquarie Group, an international investor and manager of infrastructure projects, and Russia’s Renaissance Group. The fund is targeting total investor commitments of $1 billion to 1.5 billion

“The fund will (in the current crisis) have a crucial role to play in modernizing vital infrastructure in the three largest economies of the former Soviet Union,” EBRD President Thomas Mirow said in a statement.