BNP Paribas Asset Management (‘BNPP AM’) announces that it has entered into a strategic infrastructure debt management partnership with Korea Investment & Securities (‘KIS’), the leading Korean investment banking and brokerage company. BNPP AM will act as exclusive debt originator and manager for European junior infrastructure debt on behalf of KIS, for transactions totalling up to EUR 2 billion.
The partnership was initiated with a GBP 150 million private placement to Heathrow Finance PLC, a holding company for Heathrow1, Europe’s largest airport. Following this initial investment in what is a globally-renowned UK infrastructure asset, BNPP AM is exploring further opportunities in Europe on behalf of KIS.
The transaction was originated and arranged by BNPP AM’s infrastructure debt team, headed by Karen Azoulay. The team operates on a pan-European basis, with expertise in all sectors of the market, and has a strong focus on sustainable investing. Initially focussed on senior debt, where it has deployed commitments of close to EUR 200 million since the first quarter of 2018, the team is now expanding into junior financing. This market is expanding because of the flexibility it offers to borrowers. The transaction represents a major step forward for BNPP AM’s infrastructure debt capability, confirming its ability to proactively source large scale assets within the market at different levels of the capital structure.
The infrastructure debt team is part of BNPP AM’s wider Private Debt & Real Assets investment group, headed by David Bouchoucha. The group offers clients a wide range of private debt solutions through the combined expertise of 50 credit professionals specialised in corporate debt, infrastructure debt, real estate debt and structured finance.
David Bouchoucha, CIO of Private Debt & Real Assets at BNP Paribas Asset Management, comments:
“We are very proud to have entered into this strategic partnership with Korea Investment & Securities. It demonstrates the power of BNPP AM’s distinctive approach to private credit, based on our strong origination capacity, an holistic approach to credit management and top tier structuring ability. This enables us to offer bespoke solutions that meet the requirements of large global investors.”
1Heathrow Finance PLC is a holding company of Heathrow Airport Limited, which owns and operates Heathrow Airport. Heathrow’s position as the hub airport for the United Kingdom, its long haul-focussed traffic and its strong position in the London market provide it with highly resilient traffic. The net proceeds of the loan will be used for general corporate purposes.
About Korea Investment & Securities
Korea Investment & Securities (‘KIS’) is one of the leading securities companies in Korea, with a comprehensive range of asset management and investment banking services including securities brokerage for domestic and institutional investors, underwriting, derivatives, IPOs, real estate, fund management and financial advisory services.