Macquarie Asset Management, on behalf of its institutional clients, has finalised a £120 million debt investment in the holding company of Anglian Water in the United Kingdom.

Macquarie Asset Management’s subordinated debt investment, which was made as part of its sub-investment grade debt strategy, involves the purchase of nine-year notes with a fixed rate coupon.

The investment enabled Anglian Water to refinance existing debt and will provide additional flexibility to the company as it seeks to build on its position as one of the UK’s top performing water and water recycling utilities.

The water company provides regulated water and water recycling services to almost seven million people across the East of England and Hartlepool. Its network of pipes, pumping stations and treatment facilities covers a geographic area of approximately 27,000 km2.

Gareth Edwards, a Senior Vice President at Macquarie Asset Management, commented:

“We have worked closely with the management team at Anglian Water to understand and help meet their long-term Holdco financing needs. Anglian Water is amongst the top performers in the sector, and we are delighted to have completed this transaction with them. For our institutional clients this represents a stable, long-term investment opportunity with a high-quality borrower.”

Macquarie Asset Management’s Private Credit team manages more than 135 debt investments representing over £8.5 billion of invested capital across a diverse range of sectors include utilities, transport, renewable energy, social, and digital infrastructure. This includes approximately £1 billion in the UK water and wastewater sector across the capital structure.

Jane Pilcher, Group Treasurer at Anglian Water, said:

“This new financing agreement will contribute to our investment in resilient infrastructure to support our rapidly growing customer base and to safeguard and enhance the environment. We would like to thank Macquarie for its engagement and support of our business through this long-term partnership.”