Aberdeen Standard Investments (ASI) has backed a £450m (€526m) project funding capital raising by the City of London Corporation.

ASI’s private placement team – on behalf of its strategic partner Phoenix Group – has lent £65m to the governing body of the Square Mile London to help finance a number of major capital projects.

The City of London Corporation’s project includes plans to unify three historic markets at Smithfield, Billingsgate and New Spitalfields, to a site in Barking.

Andrew Dennis, investment director at Aberdeen Standard Investments, said the City of London Corporation is an institution that pre-dates the Norman conquest and Parliament and owns assets of national and global significance.

“It is at the forefront of the Green Economy, and this financing will in part be used to reduce the environmental impact of businesses in London.

”The City’s requirement for long-dated debt capital is well matched with our clients’ appetite for long-dated fixed-income assets with low credit risk.”

Scott Robertson, head of Phoenix Group Capital said: “We are delighted to be lending to the City of London Corporation under its green and sustainable financing framework and support its commitment to sustainable initiatives.

This transaction provides long-term funding tailored to its development plan as well as providing a high-quality stream of cash flows to match Phoenix Group’s pension liabilities, Robertson said.

“Our strategic partner, Aberdeen Standard Investments, has supported us throughout this transaction, which is an excellent addition to our private investments.”