Macquarie Asset Management has invested alongside four unnamed institutional investors in a £130m (€151m) green bond issued by UK utility Affinity Water.
Affinity Water provides regulated water services to more than 3.6m people across South East England.
Macquarie said proceeds from Affinity Water’s first green bond issuance will be invested in projects that improve the sustainability performance of its 4,500km network, including investment in water treatment, leakage reduction, catchment management, river restoration, climate change adaptation, and energy efficiency.
Gareth Edwards, a senior VP in Macquarie Asset Management’s private credit team, said: “As the UK’s population continues to grow and the effects of climate change become more apparent, investment is required to ease pressure on essential community infrastructure.
“We are committed to supporting Affinity Water along this journey, providing the financing it needs to enhance the sustainability performance of its network.”
Michael Blake, treasurer of Affinity Water, said: “We are absolutely focused on delivering a long-term sustainable supply of water and giving customers an exceptional experience.
“We are delighted like-minded investors are willing to support us with funding which will be invested in accordance with our Green Finance Framework.”
Affinity Water is ultimately controlled by a consortium of long-term investors comprising Allianz Group (36.6%), HICL, managed by InfraRed Capital Partners (36.6%) and DIF (26.8%).
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