Macquarie participates in inflation linked swap restructure for Yorkshire Water Services
London, 08 Jul 2015
Macquarie Infrastructure Debt Investment Solutions (MIDIS), has participated in the restructure of Yorkshire Water Services’ (Yorkshire) inflation linked swap portfolio, which has removed existing mandatory breaks and reduced the utility’s liquidity risks. MIDIS purchased £50 million of inflation-linked Notes which have final maturities up to 2063.
This is MIDIS’ first investment in the UK water utilities sector, bringing their investments in UK regulated assets to over £200m.
Kit Hamilton, Managing Director, MIDIS, said: “We are excited to announce our first investment in the UK water sector. Yorkshire is one of the largest and best performing UK water utilities, operating in a stable, regulated sector with a strong management team. Our participation is particularly attractive for our pension scheme investors as it provides secure, long-dated inflation-linked cash flows which are complementary to their liability driven investment needs.”
Adrian Hunt, Group Treasurer for Yorkshire Water said: “MIDIS understood our requirements for the restructuring of the mandatory breaks in the index-linked swap portfolio and were able to align these with the interests of their institutional investor base, working with us to deliver an efficiently executed transaction.”
The MIDIS platform comprises a pooled fund and separately managed accounts. To date MIDIS has raised total commitments of £1.8 billion ($US2.8 billion) for its infrastructure debt strategy, which targets investment-grade infrastructure credits in sectors such as utilities, renewables, transport, PPP and social housing.
Macquarie Group (Macquarie) is a leading provider of banking, financial, advisory, investment and funds management services. Founded in 1969, Macquarie employs more than 14,000 people in 28 countries. At 31 March 2015, Macquarie had assets under management of £248.2 billion.
About Macquarie Infrastructure Debt Investment Solutions
In early 2012 Macquarie established the Macquarie Infrastructure Debt Investment Solutions (MIDIS) platform to leverage the infrastructure expertise within Macquarie into an investor-aligned global infrastructure debt investment management business. The MIDIS platform has been successful in securing mandates with prestigious insurer and pension scheme clients and has a track record of investing at attractive yields.