The Macquarie Group and Abu Dhabi Commercial Bank have raised $630 million for a joint infrastructure fund that will focus specifically on GCC countries and across the wider Middle East and North Africa region.
The ADCB Macquarie Infrastructure Fund has a $1 billion target, and has obtained a $500 million anchor investment from UAE-based Al Hail Holding, which manages a portfolio of investments and development projects. The fund has garnered another $130 million in commitments from sponsors Macquarie and Abu Dhabi Commercial Bank as well as other institutional investors from Qatar, Kuwait and Korea.
The fund will invest in traditional infrastructure sectors such as roads, water and wastewater utilities, ports, airports, district cooling, social infrastructure, gas distribution and electricity distribution and transmission, said Eissa Al Suwaidi, chairman of the Abu Dhabi bank.
“A strong pipeline of investment opportunities has already been identified for the ADCB Macquarie Infrastructure Fund” based on the back of the two firm’s deal-sourcing capabilities and the demand for infrastructure projects in the region, he added.
Earlier this year, Macquarie entered into a similar agreement with State Bank of India and the International Finance Corporation to raise a $2 billion fund to invest in Indian infrastructure projects. Some Indian media reports have suggested, though, that the fund is more likely to raise between $1 billion and $1.5 billion.