Macquarie infrastructure debt fund raises 200 million

Subscribe to our newsletter and get the latest news and business opportunities in your inbox
Macquarie infrastructure debt fund raises 200 million

Macquarie has been awarded a £200 million (€240m) mandate by an unnamed UK pension scheme for a new inflation-linked infrastructure debt fund, which will match pension funds with infrastructure borrowers.

Although UK pension funds have not yet widely invested in infrastructure debt, Macquarie predicts a significant increase in activity as banks are under pressure due to Basel III regulations.

Chief executive of Macquarie Infrastructure Debt Investment Solutions James Wilson, said:

"We expect pension investment into infrastructure debt to increase significantly over the coming year. This trend will be supported by institutional fund managers that have started investing on behalf of pension funds."

Wilson said likely target areas would include the UK's utility sectors, renewables and offshore transmission owners (OFTOs).

According to Macquarie, inflation-linked borrower demand in the UK could be around £4 billion in the three sectors, as well as more potential demand in student accommodation and social housing.

The fund will focus on investment-grade opportunities on a smaller scale, starting from £10 million.

James Wilson said that pension funds could achieve higher yields by switching from gilts or corporate bonds into infrastructure debt, which are relatively well insulated from the normal business cycle.

The new fund will target average returns of 250bps above index-linked Gilts.

List of country news

Country news

  • March 19, 2014

    Bidders Day announced for fifth batch of PF2 schools

    UK's Education Funding Agency (EFA) has announced the bidders' day for the fifth Priority School Building Programme (PSBP) private finance batch. Read more
  • March 19, 2014

    HICL Infrastructure lowers and simplifies management fees

    Listed infrastructure fund, HICL Infrastructure Company, has announced a further reduction and simplification of its management fee structure with effect from 1 April 2014. Read more
  • March 20, 2014

    CDC Group appoints infrastructure executive as Investment Director

    CDC Group, the UK's development finance institution, has announced the appointment of David Osborne as Investment Director. Read more
  • March 20, 2014

    Bonds for North Tyneside housing PFI receives rating

    Moody's Investors Service has assigned a provisional A2 senior secured rating to the £76.3 million guaranteed bonds to be issued by the SPV vehicle, Solutions 4 North Tyneside Limited, for the North Tyneside housing PFI project. Read more
  • March 21, 2014

    John Laing raises stake in Environment Fund to meet IPO target

    UK infrastructure developer, John Laing, said it will take a bigger stake of the £160 million ($254 million) environmental fund it's is listing. The goal of the firm is to meet the investor commitments target. Read more

Share this news

Join us

In order to get full access to News section, you must have a full subscription. You can check all the benefits of becoming a member and purchase a subscription on our membership page.