Mizuho Bank, Ltd. (MHBK) has decided to establish an infrastructure fund focusing on infrastructure projects in emerging Asian countries.
The new fund, of up to US$200 million, aims to enhance Japanese companies to invest in infrastructure sector, and to contribute to the development and economic growth of the Asian region.
Mizuho AsiaInfra Capital Pte. Ltd. has been established in Singapore as a wholly owned subsidiary of MHBK to provide services as the fund management company, and MHBK has made a commitment of US$125 million to the fund.
Infrastructure investment needs are large in Asia, and especially in emerging Asian countries. It is envisaged that needs to develop and/or maintain and replace existing infrastructure will continue to grow in sectors including, but not limited to, power generation, transmission, water treatment, toll roads, railways, airports or seaports.
Mizuho Bank stated in a press release:
Due to the increasing number of investments by companies in infrastructure projects with a focus on emerging Asian countries, the needs to make co-investments in such projects and/or support their negotiation with the local governments or local financial institutions are becoming more evident. By being involved from the early stages of a project, and by participating in the operation and management of a project as an equity provider, through this fund, MHBK will encourage investments by Japanese companies and support to enhance the infrastructure improvement in Asian countries.
MHBK will utilize its knowledge, experience and network in project finance accumulated over a long period of time, and liaise with project finance related divisions and/or offices in the Asian countries within Mizuho, local financial institutions, and will continue to contribute to the development and economic growth of the Asian region.