LONDON (Alliance News) - Infrastructure Debt Fund Ltd Monday published a prospectus for its placing and offer for subscription to raise up to GBP150.0 million and list to the London Stock Exchange's specialist fund market.
In a statement, the Guernsey-domiciled, non-cellular company said it will become a self-managed alternative investment fund and invest most of the proceeds of the issue into AMP Capital Infrastructure Debt Fund II, a fund structured as a number of parallel limited partnerships. AMP Capital Infrastructure Debt Fund invests in the subordinated debt of infrastructure businesses headquartered in Europe, North America, Australia and other Organisation for Economic Co-operation and Development member countries. It targets sectors that serve as the backbone for the provision of essential products such as water, gas, electricity and transport.
Infrastructure Debt Fund said that its objective will have the objective of delivering a stable and attractive interest rate-linked cash yield to investors. It will target making distributions to shareholders of Libor plus 5% to 6% per year, from and including its first financial year ending March 31 2016.
The fund also said that it intends to pay dividends for the year ending March 31, 2015 of no less than Libor plus 3.5%. The intention is for proceeds from the realisation of investments in AMP Capital Infrastructure Debt Fund II received by Infrastructure Debt Fund will be distributed to shareholders on an ongoing basis until the termination of AMP Capital Infrastructure Debt Fund II in August 2023, though that date can be extended by up to two years.
AMP Capital, which had more than USD125 billion in funds under management at the end of March, will act as investment adviser to Infrastructure Debt Fund.
Hudnall Capital LLP and Cantor Fitzgerald Europe are acting as joint financial advisers and bookrunners in relation to the issue. The issue is not underwritten.