Aberdeen Standard Investments said it has provided £65 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, part of Anglian’s Green Bond Programme, 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.
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 meet their future liabilities.
Albane Poulin, Corporate Private Placements, Aberdeen Standard Investments, said: “This investment allows us to provide long-term financial support for important environmental projects, alongside a sustainable stream of cash flows for our clients.”
Meanwhile, Aberdeen Standard Investments’ infrastructure debt team has provided more than £60 million to Semperian PPP Investment Partners Limited for essential public infrastructure.
The £60 million will help Semperian grow and purchase new PPP and infrastructure investments.
Semperian is a UK company launched in 2007 with the aim of investing in UK social infrastructure projects that deliver essential public services to local communities.
Semperian currently has 93 investments that includes 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.
Jeremy Allcock, head of infrastructure debt at Aberdeen Standard Investments, said: “Private debt continues to grow in popularity among investors who are looking for additional yield and diversified exposure.
“This investment allow us to provide long-term financial support for community projects, whilst delivering a sustainable stream of cash flows for our clients.”