July 2, 2013
Global Strategic Investment Alliance Announces Its First Investment
Acquisition of stake in one of the largest natural gas fired combined cycle and cogeneration plants in United States
Through its participation in the Global Strategic Investment Alliance (“GSIA”), Mitsubishi Corporation entered into a binding agreement to make GSIA’s first investment in Midland Cogeneration Venture (“MCV”).
The GSIA is currently an alliance between OMERS (one of Canada’s largest pension plans), Pension Fund Association, Mitsubishi Corporation, Japan Bank for International Cooperation, and Mizuho Bank*. The GSIA announced its first close at US$7.5billion USD in April 2012. Its goal is for like-minded, long-term global investors to work together in pursuit of attractive, large-scale assets including airports, railways, ports, power generation & distribution, and gas pipelines mainly in North America and Europe. Borealis Infrastructure, which invests in and manages infrastructure assets on behalf of OMERS, will originate and manage all GSIA assets including the GSIA’s investment in MCV.
MCV is the largest natural gas fired, combined cycle cogeneration plant in the United States, which is capable of producing up to 1,633 MW of electricity. MCV has been one of the core and essential infrastructure assets in Michigan, providing electricity to Consumers Energy and steam/electricity to Dow Chemical based on long term contracts. The acquisition of a stake in MCV is consistent with the GSIA investment strategy to deliver long term and stable return to pension plans and institutional investors. This transaction is subject to third party approvals.
Through its participation in the GSIA, Mitsubishi Corporation will continue to provide world-class attractive investment opportunities in infrastructure that Japanese institutional investors and pension plans have growing demand for in the portfolio.
* 2.5billion USD commitments made by four Japanese investors (Pension Fund Association, Mitsubishi Corporation, Japan Bank for International Cooperation, and Mizuho Bank) are managed by wholly owned Mitsubishi Corporation subsidiaries Double Bridge Infrastructure Inc. and DBI Management Inc.
1. About MCV
Name: Midland Cogeneration Venture Limited Partnership
Location: Midland Michigan, United States (100E Progress Place Midland, MI48640)
Capacity: 1,633 MW
Features: ・ The largest natural gas fired, combined cycle cogeneration plant in the US
・Providing electricity to Consumers Energy and steam/electricity to Dow Chemical Company
based on long term contracts until 2025
・Commenced commercial operation in 1990
(1) About the Global Strategic Investment Alliance (GSIA)
The Global Strategic Investment Alliance (GSIA), is comprised of like-minded investors with the goal of pursuing attractive, large-scale infrastructure assets. The current members are a consortium led by Mitsubishi Corporation, Pension Fund Association of Japan, and Canada’s OMERS pension plan, with a total committed capital to date of 7.5 billion USD.
(2) Company Profile of OMERS
Name: OMERS Administration Corporation (OMERS)
Representative: Michael Nobrega, President and CEO
Location: One University Avenue Suite 400 Toronto ON M5J 2P1 Canada
Date of Establishment: 1962
Members: 429,000 members（Police officers, firemen, emergency service staff, non-teaching school staff, etc.）
Net Investment Asset Amount: 61.5 billion USD（consolidated as of the end of December 2012)
Characteristics: Ranked within the world’s top three pensions in the scale of its investment in infrastructure assets amounting to 11.6 billion USD (About 15% of its
net investment assets as of December 31, 2012).
(3) Company Profile of Mitsubishi Corporation
Name: Mitsubishi Corporation
Representative: Ken Kobayashi, President and CEO
Location: 3-1, Marunouchi 2 Chome, Chiyoda-ku, Tokyo, 100-8086 Japan
Date of Establishment: 1950
Member of employees: 65,289 (consolidated, as of September 30, 2012)
Business: Mitsubishi Corporation (MC) has seven business groups which develop
operation in the diverse field of Industrial Finance, Logistics & Development;
Energy; Metals; Machinery; Chemicals; Living Essentials;
and Global Environment & Infrastructure.
In addition to these business groups, MC has a business service group.
Capital: 204 billion JPY (as of March 31, 2013)
(4) Company Profile of Pension Fund Association
Name: Pension Fund Association
Representative: Kiyoshi Murase, President and CEO
Location: 10-11 Floors, B Building, Shiba Park Building, 4-1, 2-chome, Shibakoen, Minato-ku, Tokyo, 105-0011
Date of Establishment: 1967
Operating Asset Amount: 10.745 trillion JPY (as of March 31, 2013)
(5) Company Profile of Japan Bank for International Cooperation
Name: Japan Bank for International Cooperation (JBIC)
Representative: Hiroshi Okuda, Governor
Office: 4-1 Ohtemachi 1-chome, Chiyoda-ku, Tokyo 100-8144, Japan
Date of Establishment: April 1, 2012
Capital: 1,360 billion JPY (as of March 28, 2013)
(6) Company Profile of Mizuho Bank
Name: Mizuho Bank, Ltd.
Representative: Yasuhiro Sato, President & CEO (representative director)
Location of Head Office: 3-3, Marunouchi 1-chome, Chiyoda-ku, Tokyo 100-8210, Japan
Date of Establishment: April 1, 2002
Capital: 1,404 billion JPY
Inquiry RecipientMitsubishi Corporation
Telephone:+81-3-3210-2171 / Facsimile:+81-3-5252-7705