BNP Paribas Asset Management (BNPP AM) has announced that it is forming a strategic infrastructure debt management partnership with Korea Investment & Securities (KIS), one of the largest investment banks and brokerage firms in South Korea. BNPP AM will act on behalf of KIS as originator and exclusive manager of European junior infrastructure debt, for an amount of up to EUR2 billion (US$2.26 billion).

The partnership's first investment is a GBP150 million (US$198.0 million) private placement to Heathrow Finance, a holding company of Heathrow Airport. Heathrow’s position as the hub airport for the United Kingdom, its long haul-focussed traffic and its strong position in the London market provide it with highly resilient traffic.  The net proceeds of the loan will be used for general corporate purposes.

This operation was originated and arranged by the BNPP AM infrastructure debt team. The team has invested nearly EUR200 million (US$227.2 million) senior debt since the 1st quarter of 2018, and is now extending its investment scope to junior financing, a rapidly growing market due to the flexibility it offers borrowers.