Allianz Global Investors has bought £130m of bonds on a UK infrastructure project.
The manager said it bought the bonds – on the Northern Ireland DBFO2 public-private partnership – for third-party investors including UK pension funds and Allianz group entities.
Earlier this year, the Telent pension fund became the first UK scheme to enter an infrastructure debt platform using listed project bonds, using Allianz GI to invest in Scotland’s motorway improvements scheme.
The £250m DBFO2 motorway project began in 2007. Allianz GI bought bonds issued by Amey Lagan Roads Financial, as well as restructuring its debt. The project includes a 27-year maintenance period.
Allianz GI this week launched its UK infrastructure debt fund, with backing from Nippon Life. The fund will raise up to £500m for long-term core UK infrastructure and is aimed at small and mid-sized pension funds.
Deborah Zurkow, Allianz Global Investors chief investment officer for infrastructure debt, told IP Real Estate that, having seen “early movers” in the sector prefer separately managed accounts, the time was now right to offer a product to smaller investors looking to join pools and match long-term liabilities.
Zurkow said increased demand from UK pension funds would ultimately lead to more liquidity.
Allianz has launched the fund 18 months after it created an infrastructure debt team.