Korea's KB Insurance, Natixis in infra debt tie-up

The $400m partnership is the fifth deal sealed by the French bank with insurers in Europe and Asia.

KB Insurance and Natixis have signed an agreement that will see them co–invest in infrastructure and aviation debt deals globally, PDI's sister title Infrastructure Investor has reported.

The Korean institution hopes to deploy up to $400 million over three years into loans originated by Natixis. The French lender will retain a portion of each transaction on its balance sheet, to guarantee “alignment of interest all along the life of the operation”, Natixis said in a statement.

“Institutional investors in Asia-Pacific are increasingly seeking the stability and long-term yield offered by alternative asset classes, with a particular appetite for infrastructure and aviation debt,” said Bruno Le Saint, head of structured & asset finance for Asia Pacific at Natixis.

The partnership is the bank’s fifth with institutional investors targeting infrastructure debt. At the end of last year, Natixis teamed up with insurer Swiss Life to invest €300 million. That partnership’s debut deal saw them offer an undisclosed amount to an unnamed offshore wind transaction.

Earlier in 2015, Natixis agreed to partner with French mutual insurer MACIF Group to target private debt investments through a €250 million platform. The previous two arrangements saw the bank seal tie-ups with France’s CNP Assurances and Belgium’s Ageas.