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Transactions - JUNE 25, 2018

AllianzGI infrastructure team closes first investment in Latin America

by Released

Allianz Global Investors, an active investment manager, has made an investment on behalf of its clients into the term refinancing of El Encino – La Laguna pipeline, an operating natural gas pipeline of more than 476 kilometers in central Mexico, sponsored by Fermaca.

The EELL natural gas pipeline, which has a capacity of 1,500 million cubic feet per day, connects the north with the central region of Mexico by traversing the states of Chihuahua and Durango. The pipeline will deliver natural gas to the power plants of Comision Federal de Electricidad in the region. EELL has a long-term off-take agreement with CFE.   

The refinancing structure amounted to more than $800 million of credit facilities, including a $255 million fully amortizing bank term loan and a more than 20-year fully amortizing $450 million bond. AllianzGI, on behalf of its clients, acted as lead investor in the bond tranche.

This investment is part of AllianzGI Infrastructure Debt’s expansion into Latin America initiated in 2018. This transaction is the first investment under such expanded strategy.

AllianzGI has been a provider of institutional infrastructure debt solutions to the European and U.S. markets since 2013 and 2015, respectively. AllianzGI Infrastructure Debt expanded its strategy to Latin America this year. The AllianzGI infrastructure debt platform has now made more than $4.1 billion of investment commitments to infrastructure assets in the Americas over a period of about three years, with more expected to follow.

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