The information in this site is intended for consultants, institutional investors and trustees only.

The information contained in these pages must not be used or relied upon by private investors. We recommend that you read our 'Terms & Conditions' before browsing the site.

Please click submit to confirm that you are a consultant, institutional investor or trustee and wish to continue.

This site uses cookies

A cookie is a small piece of information generated by a web server and sent to your computer when you access this website. Our cookies do not hold any personal information about you. This cookie is used to remember your selection next time you visit our site. It is stored on your computer’s hard drive but can be deleted at any time via the ‘Tools’ option on your internet browser. By clicking to accept and proceeding beyond this page, you agree to accept this cookie from this site.

This site also uses other types of cookies. For more details see our Privacy & Cookies policy. This provides options of how to opt out of these cookies.

Audience

Infrastructure debt

Contact us

For further information about our infrastructure debt investment opportunities.

Contact us

Infrastructure debt can offer long-dated, stable, cashflow-driven returns.

M&G manages over £45bn* of debt across the infrastructure asset class, in both public and private markets. We have built a substantial portfolio over a number of decades and have a proven track record or originating, closing, and actively monitoring our investments.

*As at 31 December 2015.

What is infrastructure?

Infrastructure assets form the economic backbone of a country; they are the basis on which economic growth is founded.

We group infrastructure assets into four main categories, as follows:

Infrastructure Debt Web Graphic

Why invest in infrastructure debt?

Infrastructure debt can offer long-dated, stable returns. These returns are based on cashflow, rather than on real-estate values or capital growth.

The key characteristics of infrastructure businesses, which can support these stable returns, are as follows:

  • Essential assets
  • High barriers to entry and exit for competitors and customers respectively
  • Stable cashflow generation
  • High recovery rates
  • Low correlation to the economic cycle or other asset classes
  • Potential for inflation-linkage

What forms does infrastructure debt take?

M&G has sourced a variety of infrastructure debt transactions to suit a number of investor requirements, including the following:

  • Public or private debt
  • Bond form or loan form
  • Primary market or secondary market
  • Liquid or illiquid debt
  • Index-linked, fixed or floating interest rates
  • Senior or junior debt
  • Sterling, euros or other currencies
  • Amortising or bullet repayment profile

Our experience

M&G has been investing in infrastructure debt, building and managing its portfolio for a number of decades. Our parent, Prudential Plc, made its first investment in infrastructure in 1930.

Our infrastructure debt investments currently stand at over £45bn*, spread across a range of different business types, structures and geographies.

We have been at the forefront of investing in the sector on a private basis, having built a private debt capability in the late 1990s to complement our long-standing public debt experience.

Our focus on detailed credit analysis, thorough due diligence and risk adjusted return, has enabled our client funds to avoid poorly performing deals and obtain strong performance from their infrastructure holdings throughout the credit cycle.

*As at 31 December 2015.

Responsible investing

M&G takes its responsibilities as an investor seriously. Since environmental, social and governance (ESG) issues often develop over the longer term, and many of our investments are long-term and illiquid, ESG factors can have a material impact on investment outcomes. We regard it as part of our fiduciary responsibility to include ESG issues in our investment views, as we do for all factors that influence long-term investment results for our clients.

Further detail on this, together with a case study on a private debt transaction concluded in the renewable energy sector, can be found on the Fixed Income page of our Responsible Investment site.

Our infrastructure debt professionals

Our experienced team of infrastructure experts are drawn from across our Fixed Income business and have specialist knowledge in each of the various sub-sectors.

 

John Mayhew-89 x 102 
Head of Infrastructure Debt
John Mayhew

Project & Infrastructure Finance

Tim Huband-89 x 102 
Head of Project Finance
Tim Huband
David Kemp-89 x 102 
Director
David Kemp
Adam Spencer-89 x 102 
Manager
Adam Spencer
Andrew McCormick-89 x 102 
Director
Andrew McCormick
Pierre Husser-89 x 102 
Associate Director
Pierre Husser
Ian Bigwood-89 x 102 
Administration Manager
Ian Bigwood

Public Debt Markets

Michael Posnansky-89 x 102 
Director, Transport
Michael Posnansky
Duff_Simon_Web Blue 
Analyst, Technology, Media & Telecommunications
Simon Duff
Orlando Finzi-89 x 102 
Director, Utilities
Orlando Finzi
Tim-Morris-89 x 102 
Analyst, Student Accommodation
Tim Morris

Social Housing

Mark Davie-89 x 102 
Head of Social Housing
Mark Davie
Oriane Auzanneau-89 x 102 
Associate Director
Orianne Auzanneau

Need further information?