Dutch pension fund forms €390m ESG-themed infrastructure pact

Innovative public private partnership deal announced

Dutch pension giant PGGM has announced an innovative €390m 50/50 infrastructure partnership that it says is aligned with environmental, social and governance (ESG) criteria.
The pension fund administrator, which is owned by the €99bn PFZW health and welfare pension fund, has inked a deal with construction and infrastructure group BAM Group to invest in the social and transport public private partnership (PPP) PPP markets in the Netherlands, Belgium, the UK, Ireland, Germany and Switzerland.
The new venture will be called BAM PPP PGGM Infrastructure Coöperatie U.A
“This investment in PPP infrastructure assets – including transport and public buildings, such as schools – is aligned with the ESG criteria in theinvestment policy of our institutional clients,” said PGGM’s Head of Infrastructure Henk Huizing.
He also pointed to inflation-linked returns and stable long-term cash flows.
The venture means PGGM will be investing directly in existing Dutch infrastructure projects as well as the development of future European projects.
The initial target value to be invested is €390m. BAM PPP will transfer €150m of assets into the venture with the remaining €240m to be allocated to new projects.
PGGM will provide most of the capital for existing projects, while new projects will be funded on a 50/50 basis.
BAM PPP will handle the bidding process and asset management. The two will have equal seats on the board. Announcement