KB Insurance Ltd, engages in non-life insurance related business in South Korea, and Natixis SA, a French corporate and investment bank, have recently announced that they have signed a partnership agreement to co-invest in infrastructure and aviation debt originated by Natixis.

Under the terms of the agreement, signed on Monday 11th April, KB insurance targets to invest US$400 million over three years into loans originated globally by Natixis. During the investment period, Natixis will introduce loans backed by infrastructure and aviation assets to KB Insurance, in accordance with the investment criteria specified in the agreement.

Natixis will retain a portion of each transaction on the bank’s balance sheet in order to ensure alignment of interest all along the life of the operation. Natixis will also provide servicing and administration of all assets in the portfolio.

This is the fifth such agreement signed by Natixis with institutional investors across Europe and Asia, as part of the bank’s pioneering model to open the infrastructure and aviation debt asset class to non-bank financial institutions on a large scale.

Anne-Christine Champion, Global Head of Infrastructure & Projects at Natixis, commented:

“We are delighted to partner with KB Insurance through this agreement, which is a milestone in the development of our infrastructure platform, and reflects Natixis’ expertise in delivering funding solutions to infrastructure sponsors and borrowers, and investment solutions to institutional investors.”

Bruno Le Saint, Head of Structured & Asset Finance, Asia Pacific, at Natixis added:

"Institutional investors in Asia Pacific are increasingly seeking the stability and long-term yield offered by alternative asset classes, with a particular appetite for infrastructure and aviation debt. We are committed to leveraging our global structured & asset finance franchise to deliver bespoke investment solutions to meet the requirements of our clients in Asia.”