This is part of a total £600 million commitment made from investors to Rock Rail Infrastructure.
6 Oct 2016
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
Established in 1836, Legal & General is one of the UK’s leading financial services groups and a major global investor, with international businesses in the US, Europe, Middle East and Asia. With almost £1.3 trillion in total assets under management*, we are the UK’s largest investment manager for corporate pension schemes and a UK market leader in pension risk transfer, alternative asset origination, life insurance, workplace pensions and retirement income. Through inclusive capitalism, we aim to build a better society by investing in long-term assets that benefit everyone.
* at 30 June 2021
Legal & General Retail Retirement’s mission is to help its customers lead longer, healthier, happier lives. We believe everyone should be able to have a ‘more colourful retirement’. The Division comprises the Group’s retirement savings and income, later life lending and care solutions businesses. In 2020, LGRR wrote £910 million of annuity premiums and issued £791 million of lifetime and retirement interest only mortgages.
(As of June 2021)
Legal & General Investment Management Real Assets (LGIMRA) is a division of Legal & General Investment Management (LGIM), one of Europe’s largest institutional asset managers and a major global investor. LGIM manages £1.28tn in assets (as at 31 December 2020), working with a range of global clients, including pension schemes, sovereign wealth funds, fund distributors and retail investors.
LGIM Real Assets has assets under management of £36.3bn (as at 31 December 2020) and is one of the largest private markets investment managers in the UK. Investing in both debt and equity and across the risk/return spectrum, LGIM Real Assets actively invests in and manages assets across commercial, operational and residential property sectors, as well as infrastructure, real estate, corporate and alternative debt.
Taking a long term view in order to future proof our investments, LGIM Real Assets continues to lead the industry in ESG performance, considering all environmental, social and governance issues at asset level as well as portfolio level. In 2021, we are implementing a strategy as part of our commitment to net zero carbon emissions across the real estate equity business by 2050, and have also committed to measuring social value across 20% of our platform by the end of the year.
(As of June 2021)
The value of an investment and any income taken from it is not guaranteed and can go down as well as up, you may not get back the amount you originally invested. Past performance is no guarantee of future results. You should consult an independent investment adviser prior to making any investment in order to determine its suitability to your circumstances.