AMP Capital Investors has raised an initial €241 million and secured 12 institutional investors into the new wholesale AMP Capital Infrastructure Debt Fund, which invests in the subordinated debt of essential infrastructure assets.
In addition, the AMP Capital Infrastructure Debt Fund has made its first investment, securing a £40 million high yielding loan to a leading UK based rolling stock company specialising in the leasing of passenger trains and freight locomotives.
AMP Capital Global Head of Infrastructure Debt Andrew Jones said fundraising had exceeded expectations.
“We are very pleased to achieve subscriptions of €241 million against the backdrop of what remains a very challenging fundraising market. Demand has been strong from institutional investors in Asia, Europe, North America and Australia. In particular, interest from investors in Japan has been so strong we now offer a Japanese Yen feeder fund to go along with the US Dollar feeder funds,” Mr Jones said.
“This early success means AMP Capital is well positioned to take advantage of the attractive risk adjusted returns available in the infrastructure debt space. We anticipate this investment will provide attractive risk adjusted returns for our investors in the form of regular cash coupons underpinned by a very stable and experienced borrower,” Mr Jones said.
The portfolio will consist of investments in the subordinated debt of 10 to 15 companies headquartered in OECD countries in the essential services of water, gas, electricity, transport and hospitals. The Fund will target defensive assets with high barriers to entry, a regulated environment, highly visible cash flows and strong industry positions.
“We expect to take a lead arranging role in the majority of transactions, with our focus on adding value through originating, structuring and leading pricing and terms discussions. Through our role as a key provider of subordinated debt to the infrastructure sector for over a decade, we are currently partnering with leading sponsors to pursue an exciting deal pipeline of current opportunities,” Mr Jones concluded.
The largest insurance group in China and the world’s largest listed life insurance company, China Life Insurance (Group) Company, through its subsidiaries, was a cornerstone investor in the Fund alongside Funds managed by AMP Capital. AMP and China Life formed a strategic partnership in 2009 to explore areas for partnership in pensions and asset management. The investors in the AMP Capital Infrastructure Debt Fund include life insurance, pension funds and multi manager investment funds based in Japan, Hong Kong and Australia.
