Macquarie Infrastructure Debt Investment Solutions (MIDIS) has participated in the restructure of Yorkshire Water Services' inflation linked swap portfolio, which has removed existing mandatory breaks and reduced the utility's liquidity risks.
MIDIS has purchased £50 million (US$77.5 million) of inflation-linked Notes which have final maturities up to 2063.
This is MIDIS' first investment in the UK water utilities sector, bringing their investments in UK regulated assets to over £200 million (US$310.1 million).
Kit Hamilton, Managing Director, MIDIS, said:
"We are excited to announce our first investment in the UK water sector. Yorkshire is one of the largest and best performing UK water utilities, operating in a stable, regulated sector with a strong management team. Our participation is particularly attractive for our pension scheme investors as it provides secure, long-dated inflation-linked cash flows which are complementary to their liability driven investment needs."
Adrian Hunt, Group Treasurer for Yorkshire Water said:
"MIDIS understood our requirements for the restructuring of the mandatory breaks in the index-linked swap portfolio and were able to align these with the interests of their institutional investor base, working with us to deliver an efficiently executed transaction."
The MIDIS platform comprises a pooled fund and separately managed accounts. To date MIDIS has raised total commitments of £1.8 billion (US$2.79 billion) for its infrastructure debt strategy, which targets investment-grade infrastructure credits in sectors such as utilities, renewables, transport, PPP and social housing.