IFM Debt team clinches major deal

By Industry Funds Management - 24 September 2010


Last week the IFM Debt Investments Team closed a substantial investment in the A$550m bond refinancing for the Dampier to Bunbury Natural Gas Pipeline (DBNGP), a major infrastructure artery underpinning the economy of the Perth region of Western Australia (WA).

The DBNGP feeds domestic and industrial gas consumers in and around Perth; it also supports the WA bauxite mining and alumina refining industry as well as providing a vital energy source for electricity generation.

This investment was made by IFM on behalf of its Alternative Fixed Income Fund (AFIF) and for a range of IFM's clients' infrastructure debt mandates. It is understood that the IFM client group represent the largest single "ticket" (block of investors) in the deal.

This deal was enabled by the IFM Debt team's long running experience of the asset as active debt investors, together with our knowledge of key counterparties. In addition it demonstrates our ability to move fast and maximise the negotiating advantage that collective scale brings. In no small part this is also due to our ability to talk to key potential investors and their advisers and to their responsiveness in a tight time-frame.

This transaction represents another opportunity to fuse the joint skills, experience and knowledge of a wide range of IFM staff to maximise returns to our investors. It also reflects the power of being able to invest collectively, through a number of mandates, even within a transaction offered to the broad markets.