Macquarie expands into Japanese infrastructure

By Craig Phillips

MacquarieBank has expanded its international infrastructure capabilities after striking a deal with the Development Bank of Japan to create a new joint venture in the country — the Japan Infrastructure Group (JIG).

The investment company, which will have a mandate to invest solely in Japanese infrastructure assets, is Macquarie’s first foray into infrastructure in the nation.

Macquarie head of investment banking Nicholas Moore indicates the new alliance will act as a catalyst for the group to identify further opportunities in the region.

“The acquisition of Hakone Turnpike [a $15 million toll road south west of Tokyo, and the first investment in a Japanese toll road by a foreign investor] provides Macquarie Bank with an affordable entry to the Japanese market, with minimum outlay of capital by the bank. We see significant infrastructure investment opportunities in Japan,” Moore says.

JIG will focus mainly on identifying investments in the transport and energy sectors, but will also seek to build a portfolio to include other important infrastructure projects.

Macquarie’s existing global infrastructure interests include transportation, water, telecommunications and energy assets.

Development Bank of Japan is a government owned bank and has responsibility for financing economic and social development projects in the country.