The British Pension scheme, USS, has carried out its second deal in less than six months providing debt to water companies. In this case it has given £95m of 20-year class B inflation-linked financing to Affinity Water. USS is investing in Affinity's 'class B' debt, which pays a higher yield and is subordinated to class A debt.

This follows a deal in October to provide £100m in 25-year inflation-linked financing to South East Water via the private placement of an index-linked note.

The £34bn pension scheme has said long-term inflation linked infrastructure debt was an attractive investment because it shares similar characteristics to its liabilities and provides a premium over low gilt yields.