OREANDA-NEWS. August 21, 2007. Macquarie Bank and Renaissance Capital today announced they have agreed to establish a joint venture to develop infrastructure advisory and fund management opportunities in Russia and other CIS countries.

The 50:50 joint venture, Macquarie Renaissance, will bring together a leading independent emerging markets investment banking firm and a global leader in the infrastructure sector.

“We are delighted to be making this announcement today,” said Jim Craig, Head of the Macquarie Group in Europe. “The Macquarie Renaissance partnership is uniquely placed to participate in the development of infrastructure opportunities in Russia and other CIS countries, in collaboration with the public sector and other stakeholders. We see significant opportunities in this market that we believe are well-suited to our long-term infrastructure approach.”

“There is significant need to renew and expand infrastructure in order to facilitate economic growth throughout the region and for more parts of the region to benefit from this growth. The Government has highlighted this need and the potential role of the private sector in improving the available infrastructure and accelerating the development programme. Macquarie and Renaissance Capital are committed to being a key player in this development leading up to the 2014 Olympics in Sochi and beyond,” Mr Craig said.

Alexander Pertsovsky, global CEO of Renaissance Capital, said, “We believe the combination of our established track record and relationships in the region with Macquarie’s global experience and leading infrastructure expertise offers substantial benefits to the public sector, in terms of the funding of infrastructure projects and of the overall quality of services offered to users.”

“It is estimated that up to $200 billion will be spent on infrastructure in Russia over the next five years or so, excluding the oil and gas sector. While the Government will provide most of the funding, there is an expectation that the private sector will support this development with the additional funding required,” Mr Pertsovsky said.

“Investors appreciate that the macro-economic situation in Russia is strong, with foreign reserves in excess of $400billion, investment grade ratings from Moody’s and Standard & Poor’s and strong flows of foreign direct investment. However the Russian economy is much more diversified than most people appreciate. Resources are obviously very important and dominate exports but domestic demand is a significant and growing part of GDP,” he said.

The Macquarie Renaissance partnership has a team of 10 dedicated finance professionals in place. Macquarie Renaissance is based in Moscow and will leverage Renaissance Capital’s presence across the CIS region and Macquarie’s global infrastructure network.