KOTAM to raise $800 million for global infrastructure credit investment

  • 2020-09-10

Korea Transportation Asset Management (KOTAM) is set to raise $800 million in a global infrastructure credit fund, which US-based I Squared Capital (ISC) will manage on its behalf.

NH Investment & Securities Co. and other Korean institutional investors will participate in the blind-pool fund, KOTAM said on Sept. 10.

I Squared Capital said on Sept. 9 that it signed a strategic partnership with a group of institutional investors to deploy up to $800 million in credit investments across multiple sectors and regions. But it did not specify the investors.

The credit strategy will target senior, mezzanine and unitranche debts in the energy, utilities, transport, telecom and social infrastructure sectors, mainly in the US and Europe. The mandate will span the risk spectrum, from investment grade to high yield.

KOTAM is a joint venture between KEB Hana Bank and Kukje Maritime Investment Corp. (KMARIN) and focuses on alternative investments.

The new credit fund marks KMARIN’s foray into the global infrastructure market, to diversify from aircraft and ship investments hit hardest by the COVID-19. KMARIN owns 75 vessels.

“We will give our investment guidance to ISQ, reflecting domestic limited partners’ preference,” said a KOTAM source.

I Squared Capital is an infrastructure investment manager focusing on energy, utilities, telecom, transport and social infrastructure in the US, Europe and Asia, with $14 billion under management.

By Jung-hwan Hwang

jung@hankyung.com

<Edited by Yeonhee Kim>

(Photo: Getty Images Bank)