The Dai-ichi Life Insurance Company, Limited has announced that it has loaned ¥4.5 billion (US$39.65 million) to a consortium for the acquisition of shares of High Speed 1, a railway line concession project in England, from its shareholder. This is the first time that the company has participated in a tender for an acquisition finance deal in the project finance sector. Dai-ichi has also decided to invest approximately ¥4.4 billion (US$38,77 million) in the Victorian Desalination Project (VDP), with concessionaire AquaSure, its first investment in Australia. This loan will be used to refinance project debt.
High Speed 1 is a concession for the operation and maintenance of a high-speed railway line (with a route length of 109 km between London and the English Channel), together with stations and related facilities. Dai-ichi participated in a tender for an acquisition finance deal for the project and provided debt financing subordinated to the project’s debt. In the official press release, the company claim to have gained relatively high investment return.
The Victorian Desalination Project (VDP), built at Wonthaggi, in the Australian state of Victoria, ranks among the world's largest desalination projects with an annual water desalination capacity of 150 billion liters. The Victorian Government entered into a 30-year contract with AquaSure for the company to finance, design, build, operate and maintain the VDP. The VDP provides a rainfall independent water supply, taking pressure off water stores in times of drought, and in the face of continued population growth. This first Australian project financing by Dai-ichi is aimed to further pursue the geographic diversification of the company's portfolio.
Dai-ichi continues to improve its investment returns through enhancement and diversification of its investment methods, while proactively expanding ESG investment in an effort to contribute to creating a sustainable society as a responsible institutional investor.