IMA members announce £9bn infrastructure investments following tax exemption pledge
Following the UK government pledge to introduce a new withholding tax exemption for private placements, six asset management firms have committed to a total of £9bn (€11.4bn) in UK infrastructure investments.
Private placements is the sale of long-term non-bank securities, which applies particularly to agreements between institutional investors and mid-sized businesses and infrastructure projects. Under the UK governments proposal, these agreements would now be exempt from withholding tax.
Daniel Godfrey, Chief Executive of the Investment Management Association (IMA), said: “The IMA’s members are major investors in UK businesses and infrastructure; having worked closely with members, we can announce that over the next five years Allianz Global Investors, Aviva, Friends Life, Legal & General, Prudential and Standard Life intend to make investments of around £9 billion in private placements and other direct lending to UK companies.”
Elizabeth Corley, CEO of Allianz Global Investors, said: “Allianz Global Investors aims to invest upwards of £3 billion in UK Infrastructure debt over the next three to five years, consistent with us being on track to invest around £600m in UK infrastructure debt by the end of 2014, the first full year of sterling investing activity by our pan-European infrastructure debt platform.”