For investors, Infradebt provides three distinct services:
Infradebt Ethical Fund
In 2017 Infradebt launched our first pooled vehicle – the Infradebt Ethical Fund (IEF). IEF is Australia’s first ethically screened private debt fund.
The fund, in many ways, demonstrates the multiple qualities of infrastructure debt as part of a broader fixed income strategy:
Superior risk adjusted returns – investors don’t compromise on their return objectives
Diversification though deploying capital principally in the renewable energy and social infrastructure sectors – sectors that are both large and presently the domain of banks
Achieving a positive impact – improving the liveability of our communities by safeguarding our environment, improving social equality, and building social capital.
The IEF as been certified by RIAA according to the strict operational and disclosure practices required under the Responsible Investment Certification Program. See www.responsibleinvestment.org for details.
1. The Responsible Investment Certification Program does not constitute financial product advice. Neither the Certification Symbol nor RIAA recommends to any person that any financial product is a suitable investment or that returns are guaranteed. Appropriate professional advice should be sought prior to making an investment decision. RIAA does not hold an Australian Financial Services Licence.
2. Bespoke customised mandates
For large investors, Infradebt builds and manages customised portfolios of infrastructure debt positions, whereby the client is a direct lender to infrastructure projects. These strategies are specifically designed to align with the fixed income and broader portfolio objectives of the client, reflecting their specific needs as it relates to sectors (eg renewables, transport, social infrastructure), return, interest rate structures (fixed, floating, CPI), and term.
3. Transaction advisory
For large investors with their own in-house credit teams, Infradebt acts in a purely advisory capacity, originating, structuring, undertaking credit analysis, and where appropriate, acting as lenders agent over the term of the loan.
Why infrastructure debt?
For investors – infrastructure debt delivers both a high risk-adjusted return AND transparency/visibility for the deployment of capital – investors can literally point to the assets where their members capital is making a difference. There are no opaque or complex investment structures.
Infrastructure investments benefit from more stable cash flows, lower volatility and higher recoveries in the case of default (Moodys 2014). As a direct investor in the less liquid parts of the credit market, infrastructure debt investors earn a material liquidity premium as a result.
Infradebt targets defensive loans that deliver secure yield. Our strategies are focussed on boosting fixed income returns through capturing an illiquidity premium and customised lending structures that specifically meet an individual project’s needs (and thus capturing a return for that customisation).
We employ a bottom-up, top-down investment style. That is, we seek to deeply understand both the sectors and the assets we are lending to and then price those loans across markets to ensure our clients are getting a fair return. Drawing on our decades of infrastructure investing experience, we undertake detailed analysis of each project to understand how robust the cashflows are that support our debt position to a range of adverse scenarios
For Borrowers, one of our core strengths as a firm is our ability to tailor individual debt structures reflecting the unique characteristics of an individual project.
Our team has decades of experience working with management of projects in core infrastructure, patronage projects, social infrastructure and PPPs, and energy (including transmission/distribution, generation, storage and embedded projects).
If you are looking to finance a project (or refinance an existing project) we would encourage you to talk to us directly – we operate very differently to banks. We’re fast and efficient, and will provide a different perspective on debt financing.