Backed by the South Korean government, Macquarie Group and Woori Bank have agreed to raise a $1 billion fund to invest in South Korea’s infrastructure and renewable energy sectors
Macquarie will invest as well as raise a total of $300 million, while Woori Bank will invest $200 million in the fund. The unlisted fund, which will begin fundraising in this year’s third quarter, aims to close by 2012, according to a statement from South Korea’s Ministry of Knowledge.
This week, both Macquarie and Woori Bank signed a memorandum of understanding with the ministry, which “will fully support Macquarie and Woori Bank to successfully carry out the investment plan”, it said.
Macquarie has been actively raising infrastructure funds in other countries as well. In December 2008, it raised $630 million with the Abu Dhabi Commercial Bank for a joint infrastructure fund targeting $1 billion. The fund is focused on GCC countries, across the wider Middle East and North Africa region.
In early 2008, Macquarie also entered into an agreement with State Bank of India and the International Finance Corporation to raise a $2 billion fund, focused on Indian infrastructure projects.
Headquartered in Seoul, Woori Bank is South Korea’s second largest commercial bank, according to its website. It was formed in 2002 through the merger of four banks.