A host of overseas institutions have recently invested in two major UK infrastructure projects
Canada Life and New York Life Insurance Company emerged as investors in a major water infrastructure project in the UK, alongside Cascade Infrastructure, a consortium including GLIL and Equitix.
The sponsors of United Utilities’ £3bn (€3.48bn) Haweswater Aqueduct Resilience Programme (HARP) have raised between £2bn and £2.5bn of debt from around 30 lenders comprising a mix of institutional investors and commercial banks.
The refurbished Haweswater aqueduct and a 110km pipeline, including six underground tunnel sections, will continue the supply of water to 2.5m homes in Cumbria, Greater Manchester and Lancashire. Construction will begin in 2026 and run for nine years.
The recently launched National Wealth Fund (NWF) is providing a £300m credit enhancement guarantee to Cascade Infrastructure.
Lee Belfield, investment director at GLIL Infrastructure, said: “This is a great example of how international collaboration and the deployment of local capital can deliver positive long-term impact for communities.”
Ian Brown, interim CEO of the NWF, said: “This is another example of the significant role the NWF can play in de-risking transactions, to enable the private sector to deploy the capital required to progress with critical infrastructure projects.”
In late July the British government gave the final go-ahead for the development of the £38bn Sizewell C nuclear plant on the Suffolk coast after securing vital funding commitments from Canadian institutional investor La Caisse, fund manager Amber Infrastructure and UK energy company Centrica.
La Caisse, which manages public-sector pension and insurance funds of Quebec, said it will invest up to £1.7bn in the 3.2GW nuclear power station.
Under the deal, the British state will be the largest shareholder in the project with a 44.9% stake, while La Caisse will hold 20%, Centrica 15% and London-based Amber Infrastructure is investing to own an initial 7.6%. Earlier this month, French energy giant EDF announced it was taking a 12.5% stake, lower than its previously stated 16.2% ownership.
Emmanuel Jaclot, executive vice-president and head of infrastructure at La Caisse, said: “Our commitment to invest in Sizewell C reflects La Caisse’s constructive capital approach, working to deliver optimal financial performance for our clients alongside broader economic and societal progress.
“La Caisse has a strong track record of bringing private sector expertise alongside governments and industrial players to invest in complex, regulated infrastructure where value-for-money for consumers is key.”
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