MUSCAT, OCT 23
Oman-based infrastructure fund Rakiza has successfully closed a transaction of $300 million in a subscription facility of Rakiza Fund I, a $1 billion fund focused on investing in infrastructure assets in the Sultanate of Oman and the Kingdom of Saudi Arabia. Investors in the subscription facility include a number of prominent regional and global institutional investors and asset allocators.
An announcement to this effect was made by MUFG EMEA (Europe, Middle East, and Africa), the wholesale banking arm of Mitsubishi UFJ Financial Group (MUFG). Tokyo-headquartered MUFG (Mitsubishi UFJ Financial Group) is one of the world's leading financial groups, with a global network spanning over 2,100 locations in more than 40 markets including the Americas, Europe, the Middle East and Africa, Asia and Oceania.
In a post on Wednesday, MUFG EMEA announced that it acted as Structuring Co-Arranger, Facility Agent, Security Agent, Issuing Bank and Lender for the subscription line facility.
“This transaction empowers Rakiza to more efficiently deploy capital in attractive greenfield infrastructure projects within the region and simplify its day-to day fund operations,” London-based MUFG EMEA stated.
Congratulating Rakiza on the successful transaction, Darryl D'Souza, Head of FIG Sponsor Coverage, MUFG EMEA, added: “We are very pleased to have enabled this successful transaction for Rakiza, a Fund with whom there is good overlap in MUFG’s geographic coverage in the MENA region and product capabilities in Project and Corporate Finance.”
For Muscat-based Rakiza, a leading global investor, developer, and long-term fund manager of core infrastructure assets, the subscription deal adds to a long list of successes achieved in recent years. The private equity infrastructure fund is independently co-managed by regulated independent fund manager Oman Infrastructure Investment Management (OIM) and UK-based investor, developer, and fund manager Equitix.
Earlier this year, Rakiza announced the financial close of its first transaction in Saudi Arabia, by acquiring a 40% stake in Tihama Power Generation Company, which owns and operates four plants producing 1,600 MW of electrical power and 6.3 million pounds per hour of process steam.
Last November, the infra fund acquired a 39% stake in Oman Broadband Company, a joint stock government company responsible for advancing broadband infrastructure in Oman. Also during the same year, the fund obtained a 30% stake in telecom firm Omantel’s passive tower assets in Oman, a majority stake in Khazaen Fruit and Vegetable Central Market (Silal), and an estimated 31% stake in the Oman International Container Terminal in the Port of Sohar.
In a statement, Muneer al Muneeri, OIM Founder and Rakiza co-CEO, described the latest transaction as a “first-of-a-kind subscription line facility for an infrastructure fund in the MENA region”. He added: “This facility provides us with a strong competitive advantage, enabling us to rapidly deploy into compelling infrastructure investment opportunities within the region, creating value for our investors and stakeholders.”
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