Macquarie, Woori back $1bn South Korea fund

The global infrastructure specialist and the South Korean bank will account for half of the fund's capital, which will be used to invest in South Korea’s infrastructure and renewable energy sectors.

Backed by the South Korean government, Macquarie Group and Woori Bank have agreed to raise a $1 billion fund, including $300 million from foreign investors, to invest in South Korea’s infrastructure and renewable energy sectors

Up to $300 million is expected to be contributed by Macquarie and Macquarie-led investors, while Woori Bank will commit $200 million, according to a statement from South Korea’s Ministry of Knowledge. The unlisted fund will begin fundraising in the third quarter and aims to close by 2012.

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 GCC-focused infrastructure fund targeting $1 billion. In early 2008, Macquarie partnered 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.