BNP Paribas Asset Management (BNPP AM) has entered into a strategic infrastructure debt management partnership with Korea Investment & Securities (KIS), the 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 €2 billion.
The partnership was initiated with a £150 million private placement to Heathrow Finance, a holding company for Heathrow. Following this initial investment, BNPP AM says that it 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 €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.
“We are very proud to have entered into this strategic partnership with Korea Investment & Securities,” says Bouchoucha. “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.”