Hyundai Rotem and Hana Bank Form Railway Business Fund... "Investment in Metropolitan Railroads, etc."

"Infrastructure Fund Investment... Expected Expansion of New Project Investments Including Metropolitan Rail and Tram"

Hyundai Rotem announced on the 8th that it will invest in a railway infrastructure fund together with Hana Bank.

Hyundai Rotem stated that the two companies signed an investment agreement for an infrastructure fund focused on the construction and development of social overhead capital (SOC) such as railways, airports, and roads. The fund will be managed by Hana Alternative Asset Management.

The newly established infrastructure fund is an investment fund for future strategic projects such as SOC construction and hydrogen businesses, as well as ESG (environment, social, and governance) projects. It will operate by returning profits to subscribers. The fund plans to operate using a 'capital call' method, where part of the investment capital is raised initially and additional funds are collected as demand arises.

Recently, the government allowed the private sector to propose new railway projects in the metropolitan area and provinces, including express railways, conventional railways, and trams. The private sector is now permitted to establish new lines and improve existing railway facilities. Ideas for extending start and end points and creating branch lines are encouraged.

Kim Jeong-hoon, Head of Rail Solutions Division at Hyundai Rotem (fourth from the left), and Jeon Ho-jin, Head of IB Business Division at Hana Bank (fifth from the left), pose for a commemorative photo after signing a memorandum of understanding (MOU) for joint promotion of private investment railway projects.
[Photo by Hyundai Rotem]

The two companies expect that participation in private investment projects in the railway sector will become more active with the establishment of the fund. Railway projects are mainly long-term, making it important to secure investment stability due to the relatively long investment recovery period. They judged that the participation of Hana Bank, a financial institution, and Hyundai Rotem, a railway vehicle manufacturer, would enhance the reliability of the projects.

Earlier, on the 28th of last month, Hyundai Rotem signed a memorandum of understanding (MOU) with Hana Bank to jointly promote private railway investment projects and agreed to establish a strategic cooperative relationship. Hyundai Rotem will participate as a leading company in railway vehicle manufacturing and railway system operation, while Hana Bank will participate as the lead manager for private railway investment projects.

A Hyundai Rotem official said, "Strategic cooperation with Hana Bank will serve as an opportunity to advance private railway investment projects," adding, "We will combine the capabilities of each company to secure competitiveness in private investment projects."

This content was produced with the assistance of AI translation services.