Arqaam Capital

Infrastructure

Infrastructure

Overview

Arqaam Capital's Infrastructure business has mandate to invest in infrastructure and infrastructure-like assets by way of equity and equity-related investments across the Middle East, North Africa and Turkey with a focus on the four key sectors listed below: 

  • Power & Utilities
  • Transportation
  • Industrial infrastructure
  • Social infrastructure

Our Infrastructure team targets companies with stable underlying performance: asset-intensive businesses, providing essential services over the long term, often on a regulated basis or with significant contracted revenues. We are active managers and seek investments where we can have an active role in the management of the asset through board representation and appropriate corporate governance arrangements. Before undertaking any investment we perform rigorous due diligence, analysis and benchmarking to ensure superior risk adjusted returns.

The Infrastructure team manages the Bunyah GCC Infrastructure Fund, and is in the process of establishing its second fund.

Bunyah GCC Infrastructure Fund

The Bunyah GCC Infrastructure Fund is a Shari'a compliant fund established in 2007 with a mandate to invest in infrastructure and infrastructure-like businesses in the Middle East and North Africa with a primary focus on the Gulf Cooperation Council countries. Bunyah was the first fund in the region to offer investors, the opportunity to invest in an asset class that would otherwise be unavailable, except to those companies and financial institutions with the specialist skills necessary to evaluate, structure and arrange direct infrastructure investment.

Arqaam Capital manages the Bunyah Fund which holds a portfolio of infrastructure projects that include the following:

Al Dur Independent Water and Power Project (IWPP)

A 1,234MW / 48 MIGD IWPP under a 25 year power and water purchase agreement with EWA. The USD 2.1 billion BOO project, located in Bahrain was developed by GDF Suez in partnership with GIC. Bunyah made an investment in the project in 2009 and holds a seat on the board of directors.

Barka 1 Independent Water and Power Project (IWPP)

A 456MW / 20 MIGD IWPP under a 15 year power and water purchase agreement with OPWP. In August 2010, Bunyah alongside its investment partner, ACWA Power, acquired an economic interest in the BOO project and an interest in associated service companies. Bunyah holds a seat on the board of directors and the audit committee.

Salalah Independent Water and Power Project (IWPP) (exited)

 

Arqaam Capital successfully exited from its infrastructure fund's investment in Oman's Sembcorp Salalah Power and Water Company SAOG (MSM: SEMB) "SSPWC" through  a trade sale to the Diwan of Royal Court Pension Fund, Sultanate of Oman in November 2015. BDCC Investment Company ("BDCC"), a special purpose vehicle wholly owned by an infrastructure fund currently managed by Arqaam, invested in SSPWC during the construction phase in late 2011. This investment was part of the infrastructure fund's strategy to create a balanced portfolio across brownfield and greenfield assets ensuring that the risk and return profiles are in line with the fund's investment policy. This milestone validates the infrastructure asset management team's ability to achieve returns for our investors throughout the full investment cycle having sourced the investment in 2011, exited partially via an IPO in 2013 and completed a full trade sale in 2015.

 

For more information about our products/funds, please contact us on: infrastructure@arqaamcapital.com



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Contacts

Arqaam Capital Limited
Level 27, Index Tower
Dubai International Financial Centre
PO Box 506687 Dubai
United Arab Emirates
Tel: +971 (0)4 507 1700