Aflac Global commits $2.1 billion to sustainable-infrastructure partnership with Denham Capital

By Rebecca Melvin

Concord, N.H., July 21 – Denham Capital has a $2 billion commitment from Aflac Global Investments to expand the Denham sustainable infrastructure’s business, investing primarily in senior debt of sustainable, infrastructure products. Aflac has also committed $100 million to Denham’s second dedicated equity fund to support the acquisition, enhancement and development of sustainable infrastructure assets, according to a news release from Aflac.

Aflac will also hold a non-controlling 24.9% minority equity interest in Denham sustainable infrastructure.

As of December 2020, Aflac's impact and sustainable investments totaled more than $1.7 billion, including bonds supporting affordable housing, education, hospitals and public transit in the United States and Japan, according to the Aflac Global release.

The new debt platform will leverage Denham's expertise and relationships to source opportunities to provide debt financing to support assets dedicated to environmental and social sustainability. The debt platform will target investment-grade and below-investment-grade sustainable infrastructure investments.

The initial focus will be on developed markets, including North and South America, Asia, Europe and Australia. Denham Sustainable Infrastructure's equity strategy will continue Denham sustainable infrastructure's focus targeting mid-market companies, with the majority of investments expected to be in renewable power and energy storage in both developed and developing markets.

The cumulative need for sustainable infrastructure investment is projected to be $100 trillion to $150 trillion by 2050 or $3 trillion-$4 trillion per year, according to the Global Financial Markets Association and Boston Consulting Group's 2020 Climate Finance markets and the Real Economy Report, Aflac reported.

Based in New York, Aflac Global is an asset management subsidiary of Aflac Inc. and responsible for managing the invested assets of Aflac’s insurance subsidiaries in Japan and the United States.

Denham is a U.S.-based private equity firm.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.