Aberdeen Standard Investments Underwrites Green Bond To Fund Anglian Water's Climate Change Projects
09 October 2018
Aberdeen Standard Investments has provided £65m of debt to Anglian Water in the form of a privately negotiated green bond. The investment was made on behalf of the firm’s strategic clients, including Phoenix Group, and its private credit fund, the Secure Income & Cashflow Fund (SICF*).
The bonds, which are a part of Anglian’s Green Bond Programme, will be used to finance new and existing projects focussed on climate change, for example, by cutting greenhouse gas emissions and reducing the risk of flooding. Anglian Water is the largest of the ten water and sewerage companies in England and Wales in terms of geographic area, and the fourth largest by ‘regulated capital value’.
The bonds have a maturity date of 2040 and will deliver interest payments linked to inflation (CPI), providing investors with a secure income stream to help them meet their future liabilities.
Albane Poulin, Corporate Private Placements, Aberdeen Standard Investments, said
"This investment allows us to provide long-term financial support for important environmental projects, alongside a sustainable stream of cash flows for our clients."
*SICF aims to deliver a reliable stream of cash flows by investing in a diversified portfolio of infrastructure debt, commercial real estate debt, private placement bonds and other areas of private credit.