Allianz Global Investors (AllianzGI), one of the world’s leading active investment managers, announced today that it has made a £55 million investment on behalf of its clients into the redevelopment of Dover Western Dock, announced today by Dover Harbour Board (DHB).
AllianzGI’s investment, through a 30-year private placement bond, will help support a multi-year capital programme to be undertaken by DHB to redevelop the western docks, expand ferry capacity in the eastern dock and improve the environment of Dover.
The long-term investment by UK pension funds and international insurance companies managed by AllianzGI through its Allianz UK Infrastructure Fund 1, LP and parallel direct investment mandates will supplement shorter-term banking facilities.
Commenting on the investment, UK infrastructure debt portfolio manager Adrian Jones said
"The need for investment in UK transport infrastructure, to boost the country’s connections with global trade routes and drive economic growth, is universally acknowledged. And at a time when the needs of pension and life assurance investors are not being met by traditional capital products, we are delighted to have the opportunity to show how both needs can be satisfied through the type of private debt products available in our rapidly expanding alternative assets platform."
Jones added: "The port of Dover is a unique asset. Given its history and proximity to continental Europe, it is of vital importance to UK trade. Dover Harbour Board has assembled a cost-effective funding solution that matches the most cost-effective debt product to each maturity bucket - short-term commercial bank debt, medium term European Investment Bank debt and long-term private placement bonds - thus ensuring it can keep the cost of funding the project as low as possible for its end customers."
The AllianzGI bond is a deferred draw unlisted 'qualifying private placement' - an efficient funding mechanism made possible by UK tax reform in 2015/16 which encourages international investors to invest in long-term UK infrastructure without requiring a stock market listing for debt which is acquired on a 'take-and-hold' basis by long-term investors to match long-term liabilities in their pension and life assurance businesses.
Having spearheaded the growth of infrastructure debt – an entirely new asset class – in the UK and Europe, AllianzGI’s infrastructure debt business moved into the US. Since 2012, AllianzGI’s infrastructure debt business has committed over £7.1 billion on behalf of clients into 33 infrastructure projects across 12 countries.
Earlier this week, AllianzGI announced it intends to launch its second UK Infrastructure Debt Fund later this year. The Fund, aimed at institutional investors, will invest in long-term, investment grade, core UK infrastructure assets, including primary brownfield and greenfield transactions within the transport, energy and social infrastructure sectors.
Building on its leadership in infrastructure debt as well as a range of highly successful liquid alternative strategies, AllianzGI has established a strong, fast-growing Alternatives pillar.
Since the launch of the Alternatives pillar, AllianzGI’s Assets Under Management in Alternatives have more than doubled, growing from EUR 7.6 billion in December 2014 to over EUR 19.6 billion by the end of Q3 2016. With the recent acquisition of Sound Harbor Partners, a US private credit firm, and the addition of two private debt teams from within Allianz, AllianzGI now manages over EUR 31 billion in Alternatives.
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About Allianz Global Investors:
Allianz Global Investors is a diversified active investment manager with a strong parent company and a culture of risk management. With 25 offices worldwide, we provide global investment and research capabilities with consultative local delivery. We have more than EUR 481 billion in AUM for individuals, families and institutions worldwide and employ over 500 investment professionals.
At Allianz Global Investors, we follow a two-word philosophy: Understand. Act. It describes how we look at the world and how we behave. We aim to stand out as the investment partner our clients trust by listening closely to understand their challenges, then acting decisively to provide them with solutions that meet their needs.
Data as at 30 September 2016.
For professional investors only. Investing involves risk. The value of an investment and the income from it may fall as well as rise and investors may not get back the full amount invested. Infrastructure debt investments are highly illiquid and designed for long term investors only. The views and opinions expressed herein, which are subject to change without notice, are those of the issuer companies at the time of publication. The data used is derived from various sources, and assumed to be correct and reliable, but it has not been independently verified; its accuracy or completeness is not guaranteed and no liability is assumed for any direct or consequential losses arising from its use, unless caused by gross negligence or wilful misconduct. This is a marketing communication issued by Allianz Global Investors Europe GmbH, www.allianzgi.com
, an investment company with limited liability, incorporated in Germany, with its registered office at Bockenheimer Landstrasse 42-44, 60323 Frankfurt/M, registered with the local court Frankfurt/M under HRB 9340, authorised by Bundesanstalt für Finanzdienstleistungsaufsicht (www.bafin.de
). Allianz Global Investors Europe GmbH has established a branch in the United Kingdom, Allianz Global Investors Europe GmbH, UK branch, www.allianzglobalinvestors.co.uk
, which is subject to limited regulation by the Financial Conduct Authority (www.fca.org.uk
). Details about the extent of our regulation by the Financial Conduct Authority are available from us on request.