Macquarie and ADCB to sponsor US$1 Billion Middle East Infrastructure Fund

16 December 2008

Abu Dhabi, 16 December 2008: The Macquarie Group (Macquarie) and Abu Dhabi Commercial Bank (ADCB) announced today the launch of a fund that is expected to raise up to US$1 billion to invest in infrastructure opportunities in the Gulf Cooperation Council (GCC) as well as the broader Middle East and North Africa (MENA) region.

An initial cornerstone investment of US$500m has been made by Al Hail Holding, a prominent UAE-based investor and developer, and the fund - ADCB Macquarie Infrastructure Fund (AMIF) - is now welcoming other regional investors.

AMIF, which has to date raised US$630 million in capital commitments, is currently raising capital from both domestic and international institutional investors to make investments in infrastructure and infrastructure-like assets primarily in GCC countries. It may also make investments in the broader Middle East and North Africa (MENA) region. Its current investor base comprises institutions in Qatar, Kuwait and Korea, in addition to sponsor commitments from ADCB and Macquarie.

"A strong pipeline of investment opportunities has already been identified for AMIF on the back of Macquarie and ADCB's unique deal-sourcing capabilities and the considerable demand for private infrastructure projects in the GCC countries," said Eissa Al Suwaidi, Chairman of ADCB.

He said AMIF intends to provide equity capital for investments in traditional infrastructure, such as: roads, water and wastewater utilities, ports, airports, district cooling, electricity transmission and distribution, gas distribution and social infrastructure.

The General Manager of Al Hail Holding LLC, Hamad Jassim Al Darwish, said: "We believe that AMIF, which is supported by one of the largest and most experienced infrastructure finance teams in the region, is well positioned to benefit from the infrastructure deal flow in the GCC and for this reason we are pleased to be the cornerstone investor in the fund. AMIF offers a significant value proposition to Al Hail as an equity investor while allowing us to contribute to the long-term development of the region with real benefits for the community.

"Our commitment is testament to the strength of the management capabilities of Macquarie and ADCB and our positive outlook on investing in infrastructure assets in the region."

Hajir Naghdy, Managing Director of the ADCB Macquarie joint venture, said the ADCB Macquarie joint venture was a unique partnership, backed by unrivalled infrastructure-related experience and knowledge of the regional market. It combines ADCB's unmatched local strengths with Macquarie's significant global experience, he said.

"Bringing together Macquarie's global experience in infrastructure and ADCB's unmatched credentials and footprint in its home market will give our new fund, AMIF, powerful deal origination opportunities and an unrivalled ability to execute deals," said Mr Naghdy.