7th Oct 2013 15:04
LONDON (Alliance News) - Aviva PLC's global asset management business and Hague-based NIBC Bank Monday announced the restructuring and placement of an Infrastructure Collateralised Loan Obligation, nicknamed Adriana.
The CLO is backed by UK Sterling loans to operational public-private partnership projects in the UK originated by NIBC.
"This credit enhanced infrastructure investment is a fit to the economics of shareholder funds in terms of optimality of risk, capital and returns. The investment has also been subjected to our rigorous investment process for complex assets, which is informed by structured credit technology and relative value considerations, while allowing us to shape the profile of these investments to the risk appetite of our funds," Kambiz Deljouie, Director of ALPS at Aviva Investors, said in a statement.
Adriana, the CLO issuer, lends to 47 different borrowers, with the GBP620.6 million of loans funded by three different classes of notes, 77% of which have an Aaa rating from Moody's and have a weighted average life of approximately 10 years.
The entire GBP477.8 million Class A1 Notes have been placed with Aviva with NIBC as sole arranger and sole lead manager. The Class A1 notes involved constitute GBP477.8 million and carry a coupon of 6 month GBP LIBOR+120 bps.
The transaction was settled on 27 September 2013.
Aviva shares were Monday quoted at 422.3 pence, up 7.5 pence or 1.8%.
By Samuel Agini; [email protected]; @samuelagini
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