Macquarie Asset Management invests in Affinity Water green bond issuance

Macquarie Asset Management has invested in a £130 million inflation-linked green bond issued by the financing subsidiary of Affinity Water in the United Kingdom.

Affinity Water provides regulated water services to more than 3.6 million people across South East England. Proceeds from Affinity Water’s first green bond issuance will be invested in projects that improve the sustainability performance of its 4,500-kilometre network, including investment in water treatment, leakage reduction, catchment management, river restoration, climate change adaptation, and energy efficiency.

Macquarie Asset Management’s long-term investment in the Class-A debt issuance has been made alongside four institutional investors seeking exposure to sustainable investments with high-quality, inflation-linked cash flows that match their investors’ long-dated liabilities.

Gareth Edwards, a Senior Vice President in Macquarie Asset Management’s Private Credit team, said: “We are delighted to bolster Affinity Water’s financing strategy by participating in the company’s first green bond. As the UK’s population continues to grow and the effects of climate change become more apparent, investment is required to ease pressure on essential community infrastructure. We are committed to supporting Affinity Water along this journey, providing the financing it needs to enhance the sustainability performance of its network.”

Michael Blake, Treasurer of Affinity Water, said: “Affinity Water is a steward of the local environment. We are absolutely focused on delivering a long-term sustainable supply of water and giving customers an exceptional experience. We are delighted likeminded investors are willing to support us with funding which will be invested in accordance with our Green Finance Framework.”

Affinity Water’s Green Financing Framework aligns the company’s strategic and sustainability priorities with its funding strategy. Affinity Water will report annually on the impact of the green funding and its contribution to the United Nations’ Sustainable Development Goals.

About Affinity Water

We are committed to delivering a high-quality water service to all of our customers. We provide 900 million litres of water each day to a population of more than 3.6 million people in parts of Bedfordshire, Berkshire, Buckinghamshire, Essex, Hertfordshire, Surrey, the London Boroughs of Harrow and Hillingdon and parts of the London Boroughs of Barnet, Brent, Ealing and Enfield. We also supply water to the Tendring peninsula in Essex and the Folkestone and Dover areas of Kent.