Japanese bank opens $200-M infra fund

MANILA, Philippines - Mizuho Bank Ltd. (Mizuho Bank) has established a $200-million infrastructure fund focused on the emerging Asian infrastructure projects.

Nobuhide Hayashi, Mizuho Bank president and chief executive officer, wanted the Mizuho AsiaInfra Capital Pte. Ltd. to draw Japanese companies to invest in infrastructure sector, and to contribute to the development and economic growth of the Asian region.

The Mizuho AsiaInfra Capital Pte. Ltd. was established in Singapore as a wholly owned subsidiary of Mizuho Bank to provide services as the fund management company, and the bank has made a commitment of $125 million to the fund.

Infrastructure investment needs are large in Asia, and especially in emerging Asian countries.

Funding is required to develop and/or maintain and replace existing infrastructure in sectors including, but not limited to, power generation, transmission, water treatment, toll roads, railways, airports or seaports.

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, Mizuho Bank will encourage investments by Japanese companies and support to enhance the infrastructure improvement in Asian countries.

The Japanese bank 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.