MIDIS makes Heathrow £115m inflation-linked loan
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. It is one of the longest Class B notes ever completed, according to MIDIS.
MIDIS worked closely with Heathrow to lend a £115m ($175m) 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.
“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,” said Kit Hamilton, associate sirector, MIDIS.
“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,” said Andrew Efiong, director of Treasury at Heathrow.
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 £979m 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.
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