Aberdeen Standard Investments has provided £65 million ($85 million) of debt to Anglian Water in the form of a privately negotiated green bond. The investment was made on behalf of the firm’s strategic clients, including Phoenix Group, and its private credit fund, the Secure Income & Cashflow Fund (SICF).
The bonds, which are a part of Anglian’s Green Bond Program, will be used to finance new and existing projects focussed on climate change, for example, by cutting greenhouse gas emissions and reducing the risk of flooding. Anglian Water is the largest of the 10 water and sewerage companies in England and Wales in terms of geographic area, and the fourth largest by “regulated capital value”.
The bonds have a maturity date of 2040 and will deliver interest payments linked to inflation (CPI), providing investors with a secure income stream to help them meet their future liabilities.
“This investment allows us to provide long-term financial support for important environmental projects, alongside a sustainable stream of cash flows for our clients,” said Albane Poulin, corporate private placements, Aberdeen Standard Investments.
And separately, Aberdeen Standard Investments infrastructure debt team has provided more than £60 million ($79 million) to Semperian PPP Investment Partners Limited for essential public infrastructure. The £60 million ($79 million) will help Semperian grow and purchase new PPP and infrastructure investments.
Semperian is a U.K. company launched in 2007 with the aim of investing in U.K. social infrastructure projects that deliver essential public services to local communities. Semperian currently has 93 investments that include the provision of 163 schools, 15,000 hospital beds and 508km of roads.
Aberdeen Standard Investments sourced and underwrote this investment on behalf of two clients — Phoenix Life Limited and SICF. It will deliver a long-term reliable income stream until 2035, some of which is linked to inflation.
“Private debt continues to grow in popularity among investors who are looking for additional yield and diversified exposure,” said Jeremy Allcock, head of infrastructure debt at Aberdeen Standard Investments. “This investment allows us to provide long-term financial support for community projects, whilst delivering a sustainable stream of cash flows for our clients.”
