Investors flock to infrastructure debt fund
Institutional investors from around the globe have invested over US$300 million to complete the first close of AMP's Infrastructure Debt Fund II (IDF II).
The fund will invest in the subordinated debt of infrastructure assets in essential services such as water, gas, electricity and transportation in Europe, North America and Australia.
The portfolio will consist of investments in the subordinated debt of 10-15 companies headquartered in Organisation for Economic Development and Cooperation (OECD) countries.
AMP Capital global head of infrastructure Andrew Jones said the fund had made its first investment - a 50 million pounds subordinated loan to Heathrow Airport - and was gaining momentum among investors.
"Investors globally are seeking stable high-cash yield, defensive and predictable investments and that's why we've been so successful in attracting clients to IDF II," he said.
AMP Capital's first infrastructure debt fund closed to new investment in June 2012 with US$503 million from 30 global institutional investors.
AMP Capital chief executive international and head of global clients Anthony Fasso said the fund had attracted a number of new clients to the fund manager including one of South Korea's top insurance companies.
"The broad interest we've seen from investors in the US, Asia, Australia and Europe - including attracting our first Swiss client - is testament to the compelling investment opportunity IDF II offers," he said.
"This is also the first direct infrastructure fund that our business partner Mitsubishi UFJ Trust and Banking Corporation (MUTB) has marketed to their clients, with great success."
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