20 April 2017
Korean institutional investors make significant investment in
overseas infrastructure debt
Samsung Asset Management together with IFM Investors announced that a USD480 million fund has been established, which invests in overseas infrastructure debt assets on behalf of Korean institutional investors.
The Samsung Asset Management/IFM Investors infrastructure debt fund will primarily target prime infrastructure assets in countries in North America, Europe and Australia with minimum A- sovereign credit ratings. It will invest in five main sectors – Public Private Partnerships (PPPs), power, renewables, utilities and mid-stream, where investment risk is minimised through government subsidies and long-term contracts. Four Korean institutional investors have contracted a combined USD480 million in the fund.
Regarding the partnership, Koo Sung-hoon, President and CEO at Samsung Asset Management, said: “With ageing infrastructure in developed markets needing replacement, and tougher regulations on environment; as well as increasing demand for infrastructure in emerging countries with growing populations and rapid urbanisation, the global infrastructure market is expected to continue to grow.”
“This fund brings together the expertise of IFM Investors in this market and the investment capability of Samsung Asset Management,” he added. “We expect with this collaboration to be able to offer stable returns to local institutional investors who are further diversifying their investments to overseas alternatives amid the current low interest and low growth investment environment.”
Brett Himbury, CEO of IFM Investors, said: "Being owned by super funds, IFM Investors’ infrastructure debt investment philosophy is aligned with institutional investors' objectives. With our solid, long-term performance and a philosophy built on over 20 years of experience in infrastructure investment, we are excited to announce the global infrastructure debt fund for institutional investors in Korea together with Samsung Asset Management, and we look forward to a continued long-term commitment to Korea.
“Korea is Australia’s third largest trading partner and this collaboration in financial services is a logical extension of the strong relationship that exists between our two countries,” he added. “It also benefits Australian investors by providing an additional source of capital from like-minded institutional investors, further increasing access to global investment opportunities and adding to member returns.”