Dutch pension fund PMT is making its first infrastructure debt investment via a €2bn investment mandate with AXA IM Real Assets and Macquarie Infrastructure Debt Investment Solutions (MIDIS).
The €87bn pension fund’s sister fund PME, which is also making its debut first infrastructure debt investment, will invest an additional €500m.
MN, the asset manager of the two pension funds, has selected AXA IM Real Assets and MIDIS to each manage half of the committed capital by targeting loans issued in euros by private parties in Western European countries.
According to an MN spokesperson, it will take two or three years for all of the money to be deployed.
Up to 50% of the investment will be in renewable energy infrastructure, with the remainder being invested in transport, telecom and social infrastructure. As of yet, no specific investments have yet been identified.
Investments in oil and gas will be excluded though, according to the spokesperson.
Both PMT and PME have targets to reduce their carbon emissions, but neither has a specific goal for their infrastructure investments.
Both funds currently only have private equity investments in infrastructure, including an investment in solar park Scaldia in the southwestern province of Zeeland.
The new investment is part of PMT’s plan to increase its allocation to infrastructure from the current 0.6% to 2.5% by 2025.
In the longer term, the fund wants to grow its infrastructure investments to 4% of the portfolio, PMT’s investment director Hartwig Liersch told IPE’s sister publication Pensioen Pro last year.
For PME, the investment in infrastructure loans will be part of its allocation to high-yielding, non-listed fixed income.
“For 2025, we have a target allocation of 5% to this category, half of which will be in infrastructure loans,” a spokesperson explained.
“The composition of the other half of this allocation is yet to be determined. This could be in bank loans or private placements.”
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