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Dubai International Capital and HSBC launch USD500 million infrastructure fund
- United Arab Emirates: Monday, March 20 - 2006 at 14:01
- PRESS RELEASE
Dubai International Capital (DIC), the international investment arm of Dubai Holding, and HSBC Bank (HSBC) are establishing a USD500 million fund to invest in infrastructure opportunities across the Middle East and North Africa (MENA) region.
The Fund will be known as the 'MENA Infrastructure Fund' and DIC and HSBC will each invest US$50 million in the Fund, demonstrating their confidence in the opportunity and their commitment to the sector. DIC and HSBC will also provide fund management services to the Fund.
"The MENA region is highly conducive to private sector investment in infrastructure for several reasons," explained Sameer Al Ansari, CEO of DIC. "We expect to see a strong drive for privatization and project finance in the region and particularly interesting investment opportunities in the infrastructure sector such as in utilities, energy, transportation and public private partnerships. Given the rapidly growing regional appetite from both individual and institutional investors - recent oversubscribed infrastructure based IPOs stand testimony to this - we are confident that we will receive very strong investor interest in the MENA Infrastructure Fund."
The Fund will target selected investors from across the MENA region as well as from wider international sources. The Fund will have a broad mandate to invest in companies and other entities operating within MENA markets in the various infrastructure sub-sectors.
"Infrastructure assets offer a particularly attractive investment opportunity, especially given that infrastructure expenditure over the next ten years in the Middle East and North Africa region is estimated to be in excess of $300 billion,"
said David Hodgkinson, CEO and Deputy Chairman of HSBC Bank Middle East Limited. "Not only does this sector provide good returns, but it also has a low correlation with other asset classes which allows investors to reduce their portfolio risk and decrease the overall volatility of their returns." Mr. Hodgkinson also pointed out that the MENA Infrastructure Fund will provide a unique opportunity for investors to gain exposure to a portfolio of assets that are otherwise difficult to access, concluding that, "Underlying asset valuations are generally stable over the short-term while offering potential for strong long-term capital growth."
DIC and HSBC are bringing together their extensive regional experience, financial strength and sector knowledge in the creation of the Fund. While DIC enjoys significant skills, resources and relationships in the Middle East and North Africa, HSBC has the most extensive banking network and financial services business of any international bank operating in the region and is a global leader in infrastructure advisory and financing.
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Posted by Anne-Birte Stensgaard, Senior News Editor
Monday, March 20 - 2006 at 14:01 UAE local time (GMT+4)
Replication or redistribution in whole or in part is expressly prohibited
without the prior written consent of AME Info FZ LLC / Emap Limited.
Media enquiries to:
Joanna Macdonald
Regional Manager Corporate Affairs
HSBC Bank Middle East Limited
Tel: +971 (4) 390-6630
Mashael Al Naimi
Director of Marketing Communication
Dubai International Capital
Tel: +971 (4) 362-1886
1. About Dubai International Capital
Established in 2004, Dubai International Capital is a Dubai based international investment company that primarily focuses on private equity.
Dubai International Capital is a wholly owned subsidiary of Dubai Holding, a large and diversified group that operates in the fields of healthcare, technology, finance, real estate, research, education, tourism, energy and communications.
Dubai International Capital manages an international portfolio of diverse assets that provide Dubai Holding and its stakeholders with
• Value growth
• Diversification
• Strategic investments and relationships
In its first year of operation, Dubai International Capital has made the following investments
• Committed over US$300 million to private equity funds covering Europe, Asia and the MENA region
• US$1 billion investment in DaimlerChrysler, making Dubai International Capital the company's third largest shareholder
• £800 million acquisition of The Tussauds Group in the UK, the largest operator of visitor attractions in Europe
• JD200 million (US$272 million) investment company, Jordan Dubai Capital, targeting opportunities in Jordan
• Anchor investor in Ishraq, a US$150 million company formed to develop and own up to 22 Express by Holiday Inn hotels in the Middle East
For more information, please visit www.dubaiic.com
2. About HSBC
HSBC is one of the largest banking and financial services organisations in the world. HSBC's international network comprises over 9,500 offices in 76 countries and territories in Europe, the Asia-Pacific region, the Americas, the Middle East and Africa and with assets of US$1,502 billion at 31 December 2005.
With listings on the London, Hong Kong, New York, Paris and Bermuda stock exchanges, shares in HSBC Holdings plc are held by nearly 200,000 shareholders in some 100 countries and territories. The shares are traded on the New York Stock Exchange in the form of American Depositary Receipts.
In the Middle East, the HSBC Group is represented by HSBC Bank Middle East Limited. A principal member of the HSBC Group since 1959, the Bank has 30 branches throughout the United Arab Emirates, Oman, Bahrain, Qatar, Kuwait, Jordan, Lebanon, and the Palestinian Autonomous Area, including an offshore banking unit in Bahrain. This extensive regional coverage is strengthened by another member of the HSBC Group HSBC Bank Egypt SAE, and by its associated companies, The Saudi British Bank and British Arab Commercial Bank Limited. In addition to its Middle Eastern network, the Bank has a representative office in Tehran, Iran.
HSBC's Corporate, Investment Banking and Markets (CIBM) provide tailored financial products and services to major government, corporate and institutional clients. Within client-focused business lines, Corporate and Institutional Banking, Global Investment Banking, Global Markets and Global Transaction Banking, CIBM offers full range of capabilities, including foreign exchange, equity capital markets, equity sales and trading, fixed income, derivatives, risk advisory, investment banking advisory, payments and cash management, trade services and security services.
In 2006, HSBC won Best Bank for Payments and Collections and Best for Payments and Collections in the Middle East awards from Global Finance magazines. In 2005, HSBC again topped league tables compiled by the Middle East Economic Digest, for the third consecutive year, including 'Best Bank in the GCC Project-Related and Asset Backed Finance Market' and 'Best Financial Institution in Arranging Loans and Regional Bonds'. Euromoney named HSBC as 'Best Bank in the Middle East' for 2005. This is the third successive year that HSBC has received the leading regional banking award. In 2005 Project Finance International awarded HSBC top 'Global Project Finance Advisor'.
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