Mitsubishi Corporation (TSE 8058; LSE MBC, “MC”) entered into binding commitments to participate in one of the world’s largest infrastructure investment alliances, the Global Strategic Investment Alliance (“GSIA”), to invest in the large-scale infrastructure assets mainly in North America and Europe.
Through its participation in the GSIA, MC is looking to jointly invest up to 2.5 billion USD in quality infrastructure assets, together with leading Japanese pension funds and financial institutions, namely Pension Fund Association, Japan Bank for International Cooperation, and Mizuho Corporate Bank.
The scale of this combined investment of up to 2.5 billion USD (approximately 200 billion JPY) will be the first of its kind in Japan. Through its newly established wholly-owned subsidiary, MC will place efforts into integrated fund operation and management for Japanese investors. This will be the first time the Japanese public pension fund commits such a large-scale investment in infrastructure assets.
The GSIA is a world-wide alliance that aims to raise 20 billion USD. Led by Canada’s leading pension plan, the Ontario Municipal Employees Retirement System (“OMERS“), the GSIA was designed to gather sophisticated like-minded investors to directly invest in infrastructure assets. Through the GSIA, participating alliance members will invest in core infrastructure assets with an enterprise value of more than two billion USD in sectors such as airports, railways, ports, power generation & distribution, and gas pipelines to mainly in North America and Europe.
The GSIA will be an influential and creative platform providing attractive investment opportunities to pension plans with desires for a strong and stable cash-flow, as well as gains over the long-term. It also provides sufficient and long-term capital to sustain the infrastructure market which is fundamental to society. Through the strong relationship with OMERS, a pioneer and one of the most experienced presences in the market, and through this époque-making attempt, MC will continue to contribute to the future development and enlargement of the Japanese infrastructure investment market.
We at MC regard participation in the GSIA as an important step in expanding the infrastructure sector’s asset management business. MC will continue to grow the Sogo Shosha- type financial business-model as a leading global player.
(1) Global Strategic Investment Alliance (GSIA)
With OMERS playing the central role, the GSIA will be composed of a joint consortium of investors, whose core members are from the global pension funds. This Alliance aims to have an absolute advantage in the investment market by strategically investing a large monetary sum totaling 20 billion USD (approximately 1.7 trillion JPY).
(2) Company Profile of OMERS
Name: Ontario Municipal Employee Retirement System
(Operating Company: OMERS Administration Corporation)
Representative: Michael Nobrega
Location: One University Avenue Suite 400 Toronto ON M5J 2P1 Canada
Date of Establishment: 1962
Members: 420,000 members（Police officers、firemen、emergency service staff, teachers, etc.）
Operating Asset Amount: 55 billion USD（consolidated as of the end of December 2011)
Ranked within the world’s top three pensions in the scale of its investment in infrastructure assets amounting to 9.6 billion USD (approx. 800 billion JPY) (About 15% of its total operating assets as of December 31, 2011).
(3) Company Profile of Pension Fund Association
Name: Pension Fund Association
Representative: Kiyoshi Murase, President & CEO
Location: 10-11 Floors, B Building, Shiba Park Building, 4-1, 2-chome, Shibakoen, Minato-ku, Tokyo, 105-0011
Date of Establishment: 1967
Business Operations: Calculating pension amounts, various support for members, management and operation of pensions funds, etc.
Operating Asset Amount: 10.0584 trillion JPY (as of March 31, 2011)
(4) Company Profile of Japan Bank for International Cooperation
Name: Japan Bank for International Cooperation (JBIC)
Representative: Hiroshi Okuda, President & CEO
Office: 4-1 Ohtemachi 1-chome, Chiyoda-ku, Tokyo 100-8144, Japan
Date of Establishment: April 1, 2012
Capital: JPY 1,291.0billion
(5) Company Profile of Mizuho Corporate Bank (consolidated as of end of March 2011)
Name: Mizuho Corporate Bank, Ltd.
Representative: Yasuhiro Sato, President & CEO
Location of Head Office: 1-3-3, Marunouchi, Chiyoda-ku, Tokyo 100-8210, Japan
Date of Establishment: April 1, 2002
Capital: JPY 1,404,065 million
2. Image of General Structure
※Regarding Operation and Management
The fully owned subsidiary of MC will cooperate with GSIA, make investment decisions for Japanese investors in the infrastructure market, and provide services in fund operation and management.