Southern owner, Macquarie, buys into Affinity green bond

Macquarie Asset Management has invested in a £130m inflation-linked green bond issued by the financing subsidiary of Affinity Water.

Macquarie’s investment in the Class-A debt issuance was made alongside four institutional investors.

This followed Affinity’s issuance of its first ever green bond. The proceeds will be spent on projects to further its sustainability, including through investment in water treatment, leakage reduction, catchment management, river restoration, climate change adaptation and energy efficiency.

In August, Macquarie Asset Management, on behalf of the long-term investors in its Macquarie Super Core Infrastructure Fund, acquired a majority interest in Southern Water’s ultimate holding company, Greensands Holdings.