abrdn has provided a €60m loan to Societa Gasdotti Italia (SGI), an Italian gas pipeline company owned by Ontario Teachers’ Pension Plan Board and Swiss Life.
Abrdn said the investment, which has been made on behalf of its strategic partner Phoenix Group, will be used to refinance existing debt, extend the debt maturity profile and support new investment.
SGI, the second-largest Italian transmission system operator, has a 1,700km high-pressure pipeline network transporting natural gas to key industrial and urban centres.
Albane Poulin, the head of European private placements at Abrdn said: “This investment allows us to support SGI’s capex plan to upgrade the existing networks in order to improve energy efficiency, ensure security of supply in Italy as well as preparation for energy transition.”
Poulin said SGI benefits from an established and supportive regulatory framework in Italy with limited volume risk, which can provide a “sustainable stream of cash flow to our clients”.
Manuel Dusina, the head of infrastructure at Phoenix Group, said: “Core defensive regulated assets like this in jurisdictions outside of the UK are a key element of our approach to diversification when building our portfolio.
“Investing in line with our sustainability agenda is also important to us, and this investment improves energy efficiency and upgrades in SGI’s network, and will play a vital role in the energy transition within Italy and Europe.”
To read the latest edition of the latest IPE Real Assets magazine click here.
Related Companies
- Previous
- Next
