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Aviva Investors announces first close of infrastructure debt fund, Aviva Investors Hadrian Capital Fund 1

28 May 2012

(London): Aviva Investors and Hadrian’s Wall Capital today announced the first close of the Aviva Investors Hadrian Capital Fund 1. The first close consists of commitments from Aviva Life & Pensions UK Ltd, the European Investment Bank, and the Development Bank of Japan. 

The Aviva Investors Hadrian Capital Fund 1 aims to deliver an attractive risk adjusted yield over the life of the fund, through investments in long-dated senior infrastructure debt. The fund will invest in low risk infrastructure sectors, including public buildings, transportation and regulated infrastructure, within the UK and Continental Europe. 
The fund is managed by a highly experienced team, combining the fund and asset class expertise of Aviva Investors with the infrastructure bond origination, structuring and monitoring expertise provided by Hadrian’s Wall Capital. 

Ian Berry, Fund Manager – Infrastructure and Renewable Energy, Aviva Investors, said: “When investing in infrastructure, many investors may initially think about equity rather than debt, but that perception is now changing. The European infrastructure debt market, which is expected to require at least EUR 1.2 trillion over the next ten years*, not only has the ability to provide long-term regular cash flows but also shows a low correlation with other asset classes. Historically, the sector also has low default rates and high recovery rates throughout the economic cycle. This makes it an attractive potential proposition for institutional investors, specifically as a liability matching solution.”

The fund is part of an innovative infrastructure debt financing proposition offered by Aviva Investors and Hadrian’s Wall Capital which involves the infrastructure company issuing investment grade infrastructure senior debt which is then split in two tranches. The first tranche is purchased by the fund as a subordinated infrastructure bond and the second tranche, whose credit is enhanced by the fund’s investment, is placed as senior infrastructure bonds on the capital markets.

Marc Bajer, Chairman and Founder of Hadrian’s Wall Capital, added: “We believe our approach to financing infrastructure should prove attractive to bond investors and borrowers alike.  Bond investors will benefit from receiving long-duration, credit-enhanced bonds, while borrowers gain access to long-term fixed-rate senior debt at attractive rates, which has been increasingly difficult to obtain. The fund will ultimately support the deployment of senior debt financing across both Sterling and Euros of approximately £/€10 billion at target fund size.”

The fund aims to raise further capital from other institutional investors at subsequent closes.

 

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* Source: Estimate from European Commission data 

 

For more information contact:
Laura Cocker
Corporate Affairs
+44 (0)20 7809 8452

Notes to Editors
This press release is distributed by Aviva Investors Global Services Limited. This press release is not available for general distribution in, from or into the United Kingdom because the Aviva Investors Hadrian Capital Fund 1  is an unregulated collective investment scheme whose promotion is restricted by sections 238 and 240 of the Financial Services and Markets Act 2000. When distributed in, from or into the United Kingdom, this press release is only intended for persons having professional experience of investing in unregulated schemes, high net worth companies, partnerships, associations or trusts and personnel of any of the foregoing having professional experience of investing in unregulated schemes (each within the Financial Services and Markets Act 2000 (Promotion of Collective Investment Schemes) (Exemptions) Order 2001), persons outside the European Economic Area receiving it electronically, persons outside the United Kingdom receiving it non-electronically and any other persons to whom it may be communicated lawfully. No other person should act or rely on it. Other persons distributing this [document] in, from or into the United Kingdom must satisfy themselves that it is lawful to do so.

Information contained in this press release must not be issued in any jurisdiction where prohibited by law and must not be used in any way that would be contrary to local law or regulation. Specifically, the products and services mentioned in this press release must not be promoted in any jurisdiction where this would not be permitted. Specifically, this press release is not aimed at US persons or residents of Italy, Denmark, Norway or Spain.

The information and opinions contained in this document are for use by the financial press and media only. Investment markets and conditions can change rapidly and as such the views expressed should not be taken as statements of fact or advice nor should reliance be placed on these views when making investment decisions. Past performance is not a guide to the future.

Aviva Investors
Aviva Investors is the global asset management business of Aviva plc. The business delivers investment management solutions, services and client-driven performance to clients worldwide. Aviva Investors operates in 17 countries in Asia Pacific, Europe, North America and the United Kingdom with assets under management of £263 billion at 31 December 2011.

Aviva plc
- Aviva provides 43 million customers with insurance, savings and investment products.
- Aviva is the UK’s largest insurer and one of Europe’s leading providers of life and general insurance.
- Combines strong life insurance, general insurance and asset management businesses under one powerful brand.

Aviva Investors Global Services Limited
No. 1 Poultry, London EC2R 8EJ
Phone +44 (0)20 7809 6000
Fax +44 (0)20 7489 7940
Web www.avivainvestors.com
Email info@avivainvestors.com
Aviva Investors Global Services Limited, registered in England No. 1151805.  Registered Office: No. 1 Poultry, London EC2R 8EJ.  Authorised and regulated in the UK by the Financial Services Authority and a member of the Investment Management Association.
Contact us at Aviva Investors Global Services Limited, No. 1 Poultry, London EC2R 8EJ. 12/0362

Hadrian’s Wall Capital (HWC)

HWC was established in 2009 to provide a new market-based bond-financing solution to European infrastructure debt markets. The team has extensive experience of structuring and executing project finance transactions in the UK and Europe.

We focus on assets that provide essential services to society, such as education, energy distribution, health care, transportation, and water systems.  Typically these will be long-life assets that operate in a monopoly or regulated environment, are resilient to potential technological change, and produce low-risk cashflows.


Alastair Watson020 3178 8547

enquiries@hadrianswallcapital.com
www.hadrianswallcapital.com


 

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