MEDIA RELEASE


Simplicity announced today that it has established an entity to be a local infrastructure company, InfraKiwi Limited (InfraKiwi).

InfraKiwi aims to own and operate key infrastructure assets in New Zealand for the long term. It is anticipated that it will initially be seeded with private equity investment from the Simplicity KiwiSaver and Investment Fund schemes, with the intention to list on the NZX once it achieves critical mass.

The company’s key areas of focus are energy, water, transport, data and social assets, with a long-term ownership horizon and focus on helping achieve operational excellence across these assets. 

The Infrastructure Commission has identified required New Zealand infrastructure investment projects worth $210 billion in future decades, while Simplicity Chief Economist Shamubeel Eaqub has estimated that, if current proportions of NZ retirement savings invested in offshore and domestic assets are maintained, up to $295 billion will be available for investment in New Zealand by KiwiSaver managers over the next 25 years.

“Our long-term goal is for InfraKiwi to be a listed company that all Kiwis can invest in, directly or via their KiwiSaver and investment funds, that owns and operates the infrastructure we all use,” said Sam Stubbs, Simplicity Managing Director.

“We want its ownership to be restricted to NZ shareholders. With all the capital KiwiSaver schemes, Iwi and individuals have to invest, we don’t think funding from offshore investors is required,” he said. “And by focusing on long-term operational excellence, and acquiring and operating large-scale infrastructure, we hope InfraKiwi will eventually become New Zealand’s biggest, and most boring, company.”

Following the intended NZX listing InfraKiwi would also aim to meet the criteria for inclusion in a S&P/NZX index in order to encourage wider investor participation via indexed funds. 

InfraKiwi’s constitution will have a ‘Golden Share’ held by a special purpose trust to ensure its long-term structure and purpose don’t change. Its focus will be acquiring and operating existing or recently completed infrastructure assets, and generating stable dividend income for its shareholders.  

“InfraKiwi is seeking to bridge the gap between our biggest need for investment - infrastructure - and the growing pools of capital available from KiwiSaver schemes, Iwi, other institutional and individual investors,” said Rob Everett, Simplicity Chair.

“We think matching the long-term infrastructure needs of New Zealand, with the capital New Zealanders will save, will generate stable returns for investors and promote a thriving infrastructure sector supported by much-needed jobs,” he said.

“Without mechanisms like this, more of our savings will continue to be invested offshore, making investors money, but missing the opportunity to help fund productive assets at home. New Zealand is now building up enough collective savings to fund most of our own infrastructure, and InfraKiwi’s locally owned and controlled model provides an attractive infrastructure funding option for central and local government.”

InfraKiwi foundation board members will be Sarah Sinclair, Rob Everett (Chair), Shamubeel Eaqub and Sam Stubbs.

Cristiano Marantes, former head of New Zealand’s National Energy Innovation Centre, Ara Ake, has been appointed Head of Infrastructure.

For more information go to the InfraKiwi Q and A here.


Note: InfraKiwi is a new entity and no money is currently being sought, and financial products cannot be acquired. Any offer of financial products will be made in accordance with the Financial Markets Conduct Act.