Macquarie whets the risk appetite of yield-hungry bond investors
“These are still high-quality infrastructure companies, and generally have much stronger protections in place for lenders than are available for similarly rated corporate debt.”
Mr Humphrey said the demand MIDIS had solicited from investors was matched by the interest of infrastructure players in tapping debt markets.
The borrowers supported by the fund are from the utilities, energy, renewable energy and transport infrastructure sectors, spread across Britain, Italy, Finland, the Netherlands and the United States.
“If you’re an investor or an operator of an infrastructure asset, you used to pick up the phone and talk to a bank when you needed funding,” he said.
“That has really changed over the past few years as those active in infrastructure have seen the opportunity to put in place long-term debt financing from day one, rather than shorter-term debt. offered by most banks.
Mr. Humphrey said the COVID-19 pandemic was likely to support, rather than diminish, the financing needs of infrastructure players.
“We are certainly in a growing market. . . It is likely to become more pronounced as governments move forward with infrastructure spending to spur economic recovery,” he said.
“With stretched government balance sheets and banks under capital pressure, institutional investors and investment managers like us have a significant opportunity to step in and fill this funding gap.”
The EU’s €750bn recovery package includes around €277bn of green projects, meaning a big pipeline of renewables and other low-carbon transition opportunities was in sight.
MIDIS also raised £2.7bn ($4.9bn) for its UK inflation-linked infrastructure debt strategy, and in March it closed the Macquarie Global Infrastructure Debt Fund. with $645 million ($900 million) from investors.