Macquarie’s Infrastructure Debt Investment Solutions (MIDIS) has completed its first UK water utilities deal.
The company has taken £50m ($76.8m) of inflation-linked notes from a UK water provider, Yorkshire Water Services.
Kit Hamilton, managing director at MIDIS, said: “Our participation is particularly attractive for our pension scheme investors as it provides secure, long-dated, inflation-linked cash flows that are complementary to their liability-driven investment needs.”
The deal on the swap portfolio removed existing mandatory breaks and reduced the utility provider’s liquidity risk.
The notes run as far as 2063.
The deal takes MIDIS investments in UK-regulated assets to £200m.
MIDIS, which includes a pooled fund and separately managed accounts, has raised £1.8bn for its infrastructure debt strategy.
Investment-grade infrastructure credits in utilities, renewables, transport, PPP and social housing are being bought by the vehicle.