The UK chancellor’s commitment to introducing a withholding tax exemption for investments made through private placement has been widely welcomed, including by Allianz Global Investors (AGI), which aims to invest heavily in UK infrastructure.
As part of his Autumn Statement yesterday George Osborne said he would introduce the exemption for private placements – the sale of securities to a select group of investors and considered useful for infrastructure investment.
Deborah Zurkow, chief investment officer for infrastructure debt at AGI, says: “Simple, effective changes like this, that help reduce the complexity involved in transactions, are the most cost-effective way of creating an attractive, long-term infrastructure investment environment for the broadest possible base of investors.”
AGI announced today that it aims to invest upwards of £3 billion (€3.8 billion) in UK infrastructure debt over the next three to five years.
The Investment Management Association (IMA) also announced today that along with AGI, insurers including Aviva and Legal & General will also invest £9 billion in private placements and other direct lending to UK companies over the next five years.
The IMA describes private placement as “a form of long-term, non-bank debt financing, which is particularly relevant to mid-sized businesses and infrastructure projects”.
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