AMP’s new fund to invest in utility assets.

AMP Capital has attracted more than US$300 million from 17 institutional investors from Japan, United Kingdom, Korea, Switzerland and Australia, to complete the first close of the AMP Capital Infrastructure Debt Fund II (IDF II).

The fund will invest in the subordinated debt of infrastructure assets in the essential services of water, gas, electricity and transportation located in Europe, North America and Australia.

IDF II follows the success of AMP Capital’s first Infrastructure Debt Fund which closed to new investment in June 2012 after raising US$503 million from 30 global institutional investors.

AMP Capital Global Head of Infrastructure Debt Andrew Jones said there was great momentum in attracting new global investors to IDF II.

“Investors globally are seeking stable high cash yield, defensive and predictable investments and that’s why we’ve been so successful in attracting clients to IDF II,” Mr Jones said.

“We’ve also completed the Fund’s first investment, securing a £50 million subordinated loan to Heathrow Airport. The team is pursuing a strong pipeline of attractive investment opportunities and expect to announce further investments shortly.”

The portfolio is expected to consist of investments in the subordinated debt of 10 to 15 companies headquartered in OECD countries.

AMP Capital Chief Executive International and Head of Global Clients Anthony Fasso said: “We are very pleased to welcome new clients to AMP Capital, including one of the top insurance companies in South Korea. The broad interest we’ve seen from investors in the US, Asia, Australia and Europe – including attracting our first Swiss client – is testament to the compelling investment opportunity IDF II offers.

“This is also the first direct infrastructure fund that our business partner Mitsubishi UFJ Trust and Banking Corporation (MUTB) has marketed to their clients, with great success,” Mr Fasso said.

AMP Capital’s global infrastructure debt team has eight investment professionals located in London, New York and Sydney. As one of the first to launch a global infrastructure debt fund, the investment team has successfully invested more than US$1.8 billion (as at 30 June 2013) in 38 infrastructure debt assets since 2001.

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