Aviva and NIBC close 620.6 million infrastructure collateralised loan obligation in the UK

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Aviva and NIBC close 620.6 million infrastructure collateralised loan obligation in the UK

NIBC-80Aviva Investors and NIBC Bank yesterday announced the successful restructuring and placement of an Infrastructure Collateralised Loan Obligation (CLO), named Adriana Infrastructure CLO 2008-I B.V. (Adriana). The CLO is backed by UK Sterling loans to operational public-private partnership (PPP) projects in the United Kingdom originated by NIBC.

Adriana, the CLO Issuer, is a lender to 47 borrowers. The total GBP 620.6m of loans  is funded by three classes of Notes. Moody's upgraded the Class A1 Notes of the original issuance of 2008 to Aaa(sf) on 25 September 2013.

77% of the total Notes of Adriana are Aaa rated with a weighted average life (WAL) of approximately 10 years. The entire GBP 477.8 million Class A1 Notes have been placed with Aviva with NIBC as sole Arranger and sole Lead Manager. The Class A1 carries a coupon of 6 month GBP LIBOR+120 bps. The transaction was settled on 27 September 2013.

Jeroen Drost, CEO NIBC Bank:

"We are happy to announce this first cooperation with a renowned institutional investor like Aviva Investors. It underlines the expertise NIBC Bank has in structuring infrastructure finance. With this restructuring and placement, Aviva Investors and NIBC prove to be at the forefront of co-operations between banks and institutional investors for long-term financing solutions. This is definitely the sort of transaction and structure that we will see more and more in the future."

Kambiz Deljouie, Director of ALPS at Aviva Investors, said:

"We are very pleased with our collaboration with NIBC, which has resulted in a suitable transaction for both parties. This credit enhanced infrastructure investment is a fit to the economics of shareholder funds in terms of optimality of risk, capital and returns.  The investment has also been subjected to our rigorous investment process for complex assets, which is informed by structured credit technology and relative value considerations, while allowing us to shape the profile of these investments to the risk appetite of our funds.

Munawer Shafi, Insurance LDI Fund Manager, who led the due diligence and structuring activity for Aviva Investors, commented:

"We very much valued the experience of working with NIBC, whose constructive and professional approach allowed us enough flexibility to meet our investment objectives."

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