6 Oct 2016
Legal & General backs new fleet of East Anglia trains in latest UK infrastructure funding
This is part of a total £600 million commitment made from investors to Rock Rail Infrastructure.
Legal & General is helping to finance a new state-of-the-art fleet of 58 trains, or 378 vehicles, for the East Anglia rail franchise run by Abellio. The long term debt investment by Legal & General Retirement (LGR) and LGIM clients is part of a total £600 million commitment made from investors to Rock Rail Infrastructure.
Legal & General has invested £8 billion in UK infrastructure, direct investments and urban regeneration projects, and aims to invest £15 billion. Long-term capital is used to invest in the new assets, providing income for pension funds and stimulating UK economic growth.
Kerrigan Procter, Managing Director of LGR (photo, top right), said: “Transport infrastructure is a great investment for us, as the long term income it produces helps to pay our customers’ pensions. In transport we’ve backed the UK’s first new port in over two decades with £250 million of funding, and are now helping to modernise the UK’s railways. Infrastructure investment creates new jobs and drives economic growth, which is good for business and customers.
The new rolling stock, supplied by Swiss manufacturer, Stadler, will include climate-controlled air-conditioning, Wi-Fi, power sockets, latest information services and reduced noise for passengers.
Nicholas Bamber, Head of Private Credit, LGIM Real Assets, added: “This is our first rail-related private debt investment for LGIM’s clients and further expands their exposure to essential infrastructure projects in the UK. There is a considerable need in the UK for new rolling stock in order to reduce overcrowding and improve train services and our clients have a significant appetite to finance such assets.”
Notes to Editors:
Legal & General Group Plc
Established in 1836, Legal & General is a leading provider of insurance, savings and investment management products in the UK. The Group has a market capitalisation of c. £13bn (as at 5 October 2016) and LGIM alone is responsible for investing £842bn worldwide (as at 30 June 2016) on behalf of investors, policyholders and shareholders. Legal & General has over seven million customers in the UK for life assurance, pensions, investments and general insurance plans and over one million customers in the US who rely on us for life assurance. In 2015, Legal & General's operating profit (on the IFRS basis) was £1,455m and adjusted earnings per share were 18.58p for the period, an increase of 14% and 11% respectively.
For more information on Legal & General, please see http://www.legalandgeneralgroup.com/
Legal & General Retirement
One of Legal & General’s three major asset-based businesses, Legal & General Retirement (LGR) is responsible for £51bn of annuity assets (as at 30 June 2016). LGR has been an award-winning participant in the UK pension de-risking market for nearly 30 years, and has recently extended its operations into the US and the Netherlands. LGR provides pension annuities on an individual and bulk basis and is a major investor in long-term assets to match those liabilities. Landmark transactions include the $900m deal with Philips in the US in partnership with the Prudential Insurance Company of America in 2015, the £3bn bulk annuity arrangement with the ICI Pension Fund, the largest bulk annuity policy arranged by a pension scheme in the UK to date, secured in March 2014, the UK's largest medically underwritten deal for £230m with Kingfisher in December 2015 and the £3.2bn longevity insurance transaction with the BAE Systems 2000 Pension Plan in February 2013.
Legal & General offers a range of de-risking solutions, which includes buyout, buy-in, longevity insurance and liability-driven investment (LDI), to pension schemes of all sizes. Legal & General is also able to tailor a combination of LDI and longevity insurance to provide "DIY buy-in" solutions. Legal & General has expertise in investment management, all aspects of defined benefit provision as well as an in-depth understanding of mortality trends and longevity risk. The excellent services we are able to provide also include payroll, administration and communications services. LGR is multi award winning business, and in 2016 has been awarded: UK Pensions Awards – De-risking Provider of the Year, aiCIO’s European Innovation Awards – Swap and Buy-in Provider of the Year, and European Pensions Awards – Buyout Firm of the Year.
Lgim Real Assets
LGIM Real Assets is a division of Legal & General Investment Management (LGIM), one of Europe’s largest institutional asset managers and a major global investor. LGIM manages £842bn in assets on behalf of over 3,200 clients (as at 30 December 2015), providing products and solutions spanning all asset classes. LGIM Real Assets, headed up by Bill Hughes, has AUM of £18.4bn (as at 30 June 2016) and is responsible for the division’s direct investment capabilities in property and infrastructure. LGIM Real Assets is made up of three specialist divisions, Legal & General Property (LGP), its property fund management arm, LGIM Infrastructure, its specialist infrastructure lending and investment division, and Commercial Lending Limited (CLL), its commercial lending arm.