Allianz Global Investors has struck a significant deal to finance an acquisition to a toll road, marking yet another big-ticket cheque devoted to infrastructure.
The German insurance firm invested $300 million in the acquisition of 8.8-mile Pocahontas Parkway near Richmond, Virginia, marking its third toll-road transaction in the last year and a half, the firm said Thursday (26 January). Total investments in these assets are over $1.5 billion.
The financing came out of a process in which Allianz clients pledged to provide financing in the bid made for the 89-year-old road by Globalvia, a Madrid-based infrastructure management firm, Allianz said. The investment consists of two bullet tranches of 35-year bonds privately placed with US and European investors.
Allianz’s financing comes after other large investments recently made from its infrastructure debt platform. The firm also invested $700 million in the acquisition of the Indiana Toll Road, part of a $5.73 billion acquisition by IFM investors. Its third toll-road investment was for the Chicago Skyway, part of a $2.8 billion transaction in which three Canadian pension funds reportedly took control of the road.
Another US infrastructure investment came in December as a $400 million financing in a Nebraska wind farm, as Private Debt Investor sister publication Infrastructure Investor reported at the time. The 400MW Grand Prairie Wind project in Holt County, Nebraska was financed with a private placement of 20-year unlisted bonds with US and European investors.
The firm has also been actively fundraising with multiple vehicles lately. Allianz is looking to raise £500 million for its second UK debt fund and closed a £350 million UK renewable energy investment vehicle. It also contributed $500 million to a $5 billion emerging market infrastructure debt programme run by the International Finance Corporation, the World Bank’s investment arm. Allianz also broadened its private credit portfolio with a purchase of Sound Harbour Partners for an undisclosed amount.