London, 09 November 2021
Macquarie Asset Management has invested in a £130 million inflation-linked green bond issued by the financing subsidiary of Affinity Water in the United Kingdom.
Affinity Water provides regulated water services to more than 3.6 million people across South East England. Proceeds from Affinity Water’s first green bond issuance will be invested in projects that improve the sustainability performance of its 4,500-kilometre network, including investment in water treatment, leakage reduction, catchment management, river restoration, climate change adaptation, and energy efficiency.
Macquarie Asset Management’s long-term investment in the Class-A debt issuance has been made alongside four institutional investors seeking exposure to sustainable investments with high-quality, inflation-linked cash flows that match their investors’ long-dated liabilities.
Gareth Edwards, a Senior Vice President in Macquarie Asset Management’s Private Credit team, said: “We are delighted to bolster Affinity Water’s financing strategy by participating in the company’s first green bond. As the UK’s population continues to grow and the effects of climate change become more apparent, investment is required to ease pressure on essential community infrastructure. We are committed to supporting Affinity Water along this journey, providing the financing it needs to enhance the sustainability performance of its network.”
Michael Blake, Treasurer of Affinity Water, said: “Affinity Water is a steward of the local environment. We are absolutely focused on delivering a long-term sustainable supply of water and giving customers an exceptional experience. We are delighted likeminded investors are willing to support us with funding which will be invested in accordance with our Green Finance Framework.”
Affinity Water’s Green Financing Framework aligns the company’s strategic and sustainability priorities with its funding strategy. Affinity Water will report annually on the impact of the green funding and its contribution to the United Nations’ Sustainable Development Goals.
Macquarie Asset Management (London)
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Macquarie Asset Management is a global asset manager that aims to deliver positive impact for everyone. Trusted by institutions, pension funds, governments, and individuals to manage more than £394 billion in assets globally, we provide access to specialist investment expertise across a range of capabilities including infrastructure and renewables, real estate, agriculture and natural assets, asset finance, private credit, equities, fixed income and multi asset solutions.
Macquarie Asset Management is part of Macquarie Group, a diversified financial group providing clients with asset management, finance, banking, advisory and risk and capital solutions across debt, equity, and commodities. Founded in 1969, Macquarie Group employs more than 17,000 people in 33 markets and is listed on the Australian Securities Exchange.
All figures as at 30 September 2021. For more information, please visit macquarie.com.
We are committed to delivering a high-quality water service to all of our customers. We provide 900 million litres of water each day to a population of more than 3.6 million people in parts of Bedfordshire, Berkshire, Buckinghamshire, Essex, Hertfordshire, Surrey, the London Boroughs of Harrow and Hillingdon and parts of the London Boroughs of Barnet, Brent, Ealing and Enfield. We also supply water to the Tendring peninsula in Essex and the Folkestone and Dover areas of Kent.