Development Bank of Japan goes to Hastings for infrastructure

Australia-based Hastings Funds Management has won a mandate from the Development Bank of Japan and its subsidiary DBJ Asset Management Co to invest an undisclosed amount in infrastructure debt, according to an announcement from the company.

The funds may be earmarked for clean energy generation where DBJ had recently placed much emphasis. In January it announced it had become an 8% shareholder in the Cricket Valley Energy Center, located in Dutchess County, New York, where a joint venture majority owned by Chubu Electric Power and TEPCO Fuel & Power will build a 1,100 MW natural gas-fired power station.

The main purpose of this exercise was said to be the lessons to be gained from selling electricity into a relatively less regulated market given Japan’s now ‘rapidly liberalizing’ electricity sector.

Hastings CEO Andrew Day expressed the firm’s pleasure at having established another important investment relationship with a major Japanese partner.

According Pensions & Investments Europe ‘One of Hastings’ earlier mandates came from the RBS Group Pension Fund in the UK, which, in 2012, allocated [to the firm] an initial £750m  …  to manage and develop private market infrastructure assets.’

In the same year the pension fund’s sponsor, formerly known as Royal Bank of Scotland which was bailed out by the UK government in 2008, sold its aircraft financing business to Mitsubishi UFJ.

In December 2014 MUFJ’s mega-bank rival Sumitomo Mitsui Trust Bank appointed Hastings to invest in European infrastructure debt on its behalf.

At the end of January the firm had A$3 billion in funds under management in over 40 types of infrastructure debt from around the world.

© 2017 Japan Pensions Industry Database/Jo McBride. Reporting on, and analysis of, the secretive business of Japanese institutional investment takes big commitments of money and time. This blog is one of the products of such commitment. It may nonetheless be reproduced or used as a source without charge so long as (but only so long as) the use is credited to and a link provided to the original text on that site.

This blog would not exist without the help and humour of Diane Stormont, 1959-2012


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