11 Sep 2008 10:56
11 September 2008
Vietnam Infrastructure Limited
Investment in Phu My Bridge Corporation (PMC)
Vietnam Infrastructure Limited (the "Company" or "VNI"), the first publicly traded fund to focus on investment into infrastructure and infrastructure-related assets in Vietnam, is pleased to announce that it has entered into an agreement to acquire a minority equity stake in Phu My Bridge Corporation, amounting to USD10.8 million.
Phu My Bridge Corporation (PMC) is the investor and sole owner of the concession for the build-operate-transfer (BOT) Phu My Bridge in Ho Chi Minh City, Vietnam. The bridge is under construction by leading international firm Bilfinger Berger-Baulderstone Hornibrook (BBBH), a German-Australian consortium.
Phu My Bridge will be the first cable-stayed bridge in Ho Chi Minh City. The core of the bridge is a 700-metre long cable-stayed structure supported by two 140-metre high pylons. Spanning 2km in total with six traffic lanes, the landmark bridge is a major feat of engineering and upon completion will be the connecting link in Ho Chi Minh City's second, outer ring road network.
The investment marks VNI's first entry into the toll road sector in Vietnam.
The bridge will open for traffic in the first quarter of 2010 and has a toll collection period of 26 years, after which it will be transferred to the Vietnamese government under the BOT scheme.
The bridge will serve the city's largest ports and industrial zones and will provide a north-south link to National Highway 1, allowing traffic to bypass the city centre. PMC is also building over 10km of roadway to connect the bridge to the outer ring road network.
"Ho Chi Minh City's current lack of an outer ring road means inner city streets are crowded with heavy commercial traffic. City residents and businesses alike will benefit tremendously from the completion of this bridge," said VNI fund manager William Lean.
Independent forecasts predict over 10 million vehicles will cross the bridge in its first operating year, rising to 15 million vehicles per year after 5 years.
More about VinaCapital Group:
VinaCapital is the leading asset management and financial services group in Vietnam. The Group combines its deep market experience and networks to generate strategic investment and financing products, alongside merger and acquisition activities. VinaCapital manages total assets valued at almost USD1.9 billion under its four funds (NAV figures as at 31 July 2008):
Vietnam Opportunity Fund (VOF) is a USD701 million diversified investment fund that has consistently been among the top performing Vietnam funds.
VinaLand Limited (VNL) is a USD790 million real estate fund established in March 2006.
Vietnam Infrastructure Limited (VNI) is a USD338 million fund established in July 2007 as the first fund to invest solely in Vietnam's infrastructure sector.
DFJ VinaCapital L.P., a USD32 million technology venture capital fund.
VinaCapital also has a dominant stake in VinaSecurities JSC, a brokerage firm. VinaCapital currently employs over 180 investment personnel in its offices in Ho Chi Minh City, Hanoi, Danang, Nha Trang and Hong Kong. More information on the Group can be found at www.vinacapital.com.
Details on Vietnam Infrastructure Limited are available directly at www.vietnam-infrastructure-fund.com.
For more information please contact:
| Ms Chi Nguyen VinaCapital Investment Management Limited Investor Relations | +84 8 821 9930 chi.nguyen@vinacapital.com |
| Philip Secrett Grant Thornton UK LLP Nominated Adviser | +44 20 7383 5100 philip.j.secrett@gtuk.com |
| Hiroshi Funaki LCF Edmond de Rothschild Securities | +44 20 7845 5960 funds@lcfr.co.uk |
| David Cranmer Financial Dynamics | +44 20 7831 3113 david.cranmer@fd.com |