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The European Diversified Infrastructure fund (EDIF), managed by First State Investments, the asset manager of the Commonwealth Bank of Australia, has acquired 100% of Ferngas Nordbayern GmbH (FGN), including its participations in GasLINE from E.ON.
FGN is the owner of a high pressure gas distribution network located in the north-eastern part of the Federal State of Bavaria, Germany.
Gas distribution in Germany benefits from a stable, well established and transparent regulatory framework creating a low risk operating environment. FGN also benefits from highly visible, inflation-linked cash flows due to the stable and predictable nature of the regulated income.
Although the financing terms were not disclosed, we can reveal that DekaBank has provided infrastructure financing for the acquisition along with two other banks. Part of the financing volume of DekaBank was placed with third parties in the context of asset management mandates.
The total length of the network is more than 2,100km, with over 160 gas pressure reduction and metering stations. The company had 2012 Revenue and EBITDA of €25.9 million and €13.8 million, respectively.
EDIF held a first close in August 2009 and currently has committed capital of c. €1.3 billion from investors from Europe, North America, Asia and Australia. EDIF currently holds investments in Anglian Water Group, Digita, Electricity North West and Reganosa. EDIF is a 15 year closed-end fund with a geographical focus on Europe and a strategy to target mature economic infrastructure.