AMP Capital is looking to raise $2bn (€1.8bn) for its third infrastructure debt fund.

The company said it was looking to raise funds from global institutional investors for its Infrastructure Debt Fund III.

IDF III is the company’s third debt fund in five years.

IDF II raised $1.1bn and $250m of additional co-investment pledges.

AMP Capital said IDF III would be targeted towards institutional investors seeking yield – in particular, pension plans and insurance companies.

The fund will invest in utilities, energy and transport in OECD countries.

AMP Capital global head of infrastructure debt Andrew Jones said: “IDF III looks to capitalise on the success of both IDF I and IDF II and the target size, which is double that of IDF II, reflects the strength of the infrastructure debt asset class and the investment pipeline created by our team.

“For IDF III, we will continue to focus on finding compelling mezzanine opportunities in infrastructure businesses in developed countries.

“Investors have told us they are looking for investments with high yield and stable returns, both characteristics of infrastructure debt and what our IDF I and II funds have delivered to their investors.”

IDF I is fully invested while IDF II, which has a four-year investment period, has secured 11 investments in Europe, the Americas and Australia.