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.
Offshore transmission owner source: LGIM as at March 2024.
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.
Thameslink: LGIM at November 2021
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.
Source: LGIM as at December 2022
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).
Canberra Data centres: LGIM as at February 2023
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
High quality investments with a relentless focus on credit, structure and pricing.
Get in touch
Get in touch
If you would like any further information please complete the contact us form.
Key risks
The value of an investment and any income taken from it is not guaranteed and can go down as well as up, you may not get back the amount you originally invested. Past performance is no guarantee of future results.
Whilst LGIM has integrated Environmental, Social, and Governance (ESG) considerations into its investment decision-making and stewardship practices, this does not guarantee the achievement of responsible investing goals within funds that do not include specific ESG goals within their objectives.
The risks associated with each fund or investment strategy should be read and understood before making any investment decisions. Further information on the risks of investing in this fund is available in the prospectus at. http://www.lgim.com/fundcentre