Deal update: Ostrum AM’s private debt real asset team is active during the Covid-19 crisis, and has invested in a rural broadband network in Germany.
During the Covid-19 crisis, Ostrum AM has continued to be active in the infrastructure debt market, aiming to select attractive opportunities in terms of risk/return profile. We stick to our convictions on transition, and more precisely energy, ecological and digital transitions. These themes have proven to be essential during this crisis.
Our latest investment in April 2020 is a rural broadband network in Germany. This technology is particularly important to enable working from home, connectivity, and e-health, amongst others. Over the longer term, we believe this outbreak will fast track the adoption of remote working and investment in other collaborative technologies. State of the art broadband networks, like this project, will be essential in this shift.
With this transaction, the average all-in rate of the Essential Infrastructure strategy is improved from 2.69% to 2.74% compared to the strategy’s 2% target.
Risks associated with the Essential Infrastructure strategy include but are not limited to the below list:
Loss of capital, no assurance of investment return;
Performance of assets (especially linked to construction risk, nature of cash flow risk) incl. general counterparty risk,
General economic and market conditions, changes in general law and regulation and taxation, risks associated with the deployment of the fund.
Ostrum Asset Management - 43, avenue Pierre Mendès-France – CS 41432 – 75648 Paris cedex 13 France – Phone: +33 1 78 40 80 00
Limited company with a share capital of 27 772 359 euros – Trade register n°525 192 753 Paris – VAT: FR 93 525 192 753
Regulated by under n°GP GP-18000014
Register office: 43, avenue Pierre-Mendès France – 75013 Paris – www.ostrum.com
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