Macquarie and Heathrow partner on £115m inflation linked debt financing
London, 4 February 2015
Macquarie Infrastructure Debt Investment Solutions (MIDIS) has provided a unique form of inflation linked financing to Heathrow, as it continues to deploy capital raised from institutional investors in 2014.
MIDIS worked closely with Heathrow to lend a £115m inflation linked Class B note that matures in 2036. The note is believed to be one of the first of its kind being inflation linked, delayed settlement and at the Class B level. It is also believed to be one of the longest Class B notes ever completed.
The funds come from investments into Macquarie’s infrastructure debt strategy platform which comprises of a pooled fund and separately managed accounts. MIDIS has raised total commitments of £979 million [$1.56 billion] from 11 major institutions to invest in UK inflation linked debt and is targeting investment-grade issuers in sectors such as utilities, renewables, transport and social housing. Today’s deal follows the financing of seven on-shore wind farms by MIDIS last December.
Kit Hamilton, Associate Director, MIDIS: “Heathrow represents the kind of investment opportunity that is very attractive to institutions and pension funds today. It is an established infrastructure issuer with a strong management team operating in a regulated sector. We were able to work quickly with Heathrow on a unique instrument that met their borrowing needs and provided the long-term inflation linked returns our clients require.”
Andrew Efiong, Director of Treasury at Heathrow said: “We were attracted by Macquarie’s ability to offer a financing product tailored precisely to our needs. They came to the table with committed funds from long-term investors and were able to complete the financing in very short order. This facility will help us continue to invest in and develop Heathrow for the future.”
For additional information, please contact:
Macquarie Corporate Communications
+44 203 037 2860
Macquarie Group (Macquarie) is a leading provider of banking, financial, advisory, investment and funds management services. Founded in 1969, Macquarie employs more than 13,900 people in 28 countries. At 30 September 2014, Macquarie had assets under management of €295 billion. For more information, visit www.macquarie.com
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.