Macquarie Infrastructure Debt Investment Solutions (MIDIS) has invested in a synthetic securitisation of NatWest’s GBP 1.1 billion portfolio of project finance loans in the UK’s sustainable energy market.
The transaction was a structured finance solution delivered by MIDIS in partnership with BAE Systems Pension Funds Investment Management (BAPFIM), allowing NatWest to recycle capital which it can use for further lending to the UK’s renewables sector.
The portfolio is made up of onshore and offshore wind, solar, smart meters, energy from waste, and biomass power.
This type of transaction – also referred to as a capital relief trade – allows investors with less capital restrictions, such as pension funds, to gain exposure to debt portfolios at an attractive point in the risk/return spectrum. MIDIS and BAPFIM invested into this transaction on behalf of the BAE Systems Pension Schemes, which in aggregate comprise approximately GBP 24.5 billion in assets.
Tom van Rijsewijk , Managing Director, MIDIS, said: “We are committed to the renewable energy sector and are pleased to have delivered this innovative ‘alternative’ capital management solution to NatWest. It offers an attractive investment opportunity for our investors whilst at the same time supporting further investments into the decarbonisation of the UK energy market. MIDIS is actively pursuing a pipeline of opportunities to deliver solutions, utilising its institutional investor capital base combined with strong execution capabilities.”