Macquarie increases water interests with £120m debt investment in Anglian holding company

Macquarie Asset Management, on behalf of its institutional clients, has finalised a £120m debt investment in the holding company of Anglian Water.

The deal, which Macquarie said was made as part of its sub-investment grade debt strategy, involve the purchase of nine-year notes with a fixed rate coupon. The investment enabled Anglian Water to refinance existing debt and will provide additional flexibility to the company.

Gareth Edwards, a senior vice president at Macquarie Asset Management, said: “Anglian Water is amongst the top performers in the sector, and we are delighted to have completed this transaction with them. For our institutional clients this represents a stable, long-term investment opportunity with a high-quality borrower.”

Jane Pilcher, group treasurer at Anglian Water, said: “This new financing agreement will contribute to our investment in resilient infrastructure to support our rapidly growing customer base and to safeguard and enhance the environment.”

Macquarie Asset Management’s Private Credit team manages more than 135 debt investments representing over £8.5bn of invested capital across a diverse range of sectors include utilities, transport, renewable energy, social, and digital infrastructure. This includes approximately £1bn in the UK water and wastewater sector across the capital structure.

Macquarie recently became majority owner of Southern Water and invested in a £130m inflation-linked green bond issued by the financing subsidiary of Affinity Water.