A compelling opportunity to invest across essential sectors experiencing significant tailwinds
Investing in the building blocks of society
Our infrastructure debt capability encompasses the financing of infrastructure assets across four key sectors; energy (e.g. renewables), transportation (e.g. rail), digital (e.g. data centres) and social infrastructure (e.g. healthcare facilities). We aim to provide long-term, stable cashflows through a portfolio of diversified investment-grade and crossover (BB rated) financings.
Infrastructure debt displays some resilient risk characteristics and defensive attributes. For example, the ‘essential’ nature of infrastructure means revenue streams are often intrinsically tied to inflation. Further, the asset class displays inherent sustainability features and structural tailwinds due to the direct link with macro/policy themes such as the energy transition and digital connectivity.
Case studies
Lending to the Offshore Transmission Owner
We were the sole institutional lender to an operational Offshore Transmission Owner (OFTO) connecting a UK offshore wind farm to the national grid through a series of cable network, substations, and other electrical equipment. This transaction, which has an inflation-linked income stream, provides exposure to essential infrastructure for the transition to a low carbon economy.
Providing finance to Thameslink
We provided a long-term debt financing to Thameslink, which operates electric trains on many of the busiest stations in London as well some of the UK’s busiest airports. The trains, which are the largest single fleet in the UK, are 50% more energy efficient than old trains as heat generated from braking is conserved and used to re-generate power.
Long-term financing for US renewables
We provided long-term financing for a large portfolio of operating wind and solar assets (1.3 GW) located across six US States.
Private placement financing for Canberra Data Centres, Australia
We provided the inaugural private placement financing for Canberra Data Centres (CDC), the second largest data centre provider by capacity in Australia (268 MW).
Other asset strategies
Alternative debt
Our transactions in alternative debt cover a broad spectrum – from trade and asset-backed finance – through to government supported opportunities, derivatives strategies and private asset-backed securities (ABS).
Corporate debt
For private corporate and public sector entities seeking to borrow outside of the public markets, we specialise in providing bespoke debt financing across a variety of sectors, structures and geographies.
Real estate debt
Drawing on LGIM’s position as one of the UK’s largest and most experienced property investors, we provide expertise in senior loans secured against a broad range of property sectors.
Private credit
Partnerships designed to deliver real social and economic impact
Get in touch
The Real Assets Solutions team operates right across the entire LGIM Real Assets platform. With more than 100 years of combined industry experience, our 14-strong team draws on the expertise of former investors, consultants and product specialists.
Key risk
The value of any investment and any income taken from it is not guaranteed and can go down as well as up,
and investors may get back less than the amount originally invested.