Shinhan Alternative Investment Management Inc. and Hana Financial Investment Co. Ltd. will join hands with The Carlyle Group, a global investment firm, to invest $600 million (700 billion won) in overseas infrastructure.
According to investment banking sources on July 13, Carlyle and Shinhan have recently agreed to launch a “Shinhan-Carlyle Infra-Credit Fund” that will invest in prime infrastructure loan products in major advanced countries, including the US and Europe, with a target return of 6% to 8% per year. When the two firms form the fund, Hana plans to acquire and resell it to domestic institutional investors.
“Shinhan-Carlyle Infra-Credit Fund” is meaningful as it is being formed when overseas alternative investment has virtually come to a standstill due to the coronavirus outbreak, market analysts said. “Collaboration like this is expected to open a good opportunity to invest in high-quality infrastructure assets for the Korean financial firms that are often said to lack both information and expertise on overseas alternative investment, even though they have abundant liquidity,” they added.
It is the second collaboration since Shinhan Financial Group and Hana Financial Group signed a memorandum of understanding (MOU) on May 25 to cooperate in overseas projects. After the MOU, Shinhan Bank and Hana Bank signed a financial agreement to participate in the syndicated loan the African Export-Import Bank raised. (Reporting by Jinwon Lee)