Press Release
10 December 2008
McGrigors acts for Bank of Scotland on £434m infrastructure fund closing
National law firm McGrigors has advised Bank of Scotland Corporate on the closing of a £434million fully-seeded Fund containing the Bank's risk capital investments in UK PFI/PPP infrastructure assets. Bank of Scotland's Infrastructure Finance team successfully sold 49.9% of the fund to a select group of four UK pension fund investors to complete its first institutional fund fundraising.
The Fund’s portfolio was carefully constructed by Bank of Scotland over ten years and comprises 47 investments in infrastructure projects and one infrastructure fund investment. The majority of projects are in their operational phase, enjoy revenues that are inflation-linked and underpinned by robust long-term contractual arrangements with government agencies. The Fund is structured with a 25-year term and will continue to be managed by Bank of Scotland's risk capital team.
Michael Watson, partner at McGrigors, said:
"We were delighted to be able to bring our expertise in projects and infrastructure to the transaction to help Bank of Scotland complete their strategic goal of developing a full offering to the PFI/PPP market."
Leslie Tennant, Risk Capital, Bank of Scotland added:
"The structuring of the Fund, as a subsidiary of BoS, was a key element of our long term strategy providing a near seamless transition of our investment for our investee companies. McGrigors' detailed analysis, structuring input and commitment to the launch enabled us to market and close the Fund within a very short window."
The McGrigors team was led by partner Michael Watson with assistance from partner Euan McVicar and Richard Scott and Sophie Black. Kirkland & Ellis International LLP acted as legal advisers to the fund.
Andy Peat
Business Development Director
Telephone: +44 (0)20 7054 2710
Mobile: +44 (0)7894 835 386
Email: andy.peat@mcgrigors.com
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