abrdn invests in Italian gas network

abrdn has invested EUR 60m on behalf of its strategic partner Phoenix Group (“Phoenix”) in Societa Gasdotti Italia S.p.A (“SGI” or the “Company”) the second largest Italian Transmission System Operator with 1,700km of high-pressure gas network.

The loan is used to refinance existing debt, extend the debt maturity profile and support new investment including the replacement of existing infrastructure, extension of the pipeline, and construction of a new compressor station. SGI benefits from an established and supportive regulatory framework in Italy with limited volume risk ensuring a sustainable stream of cash flows to our clients.

Gas infrastructure plays a key role in the energy transition in Europe, and part of the proceeds of the refinancing will be used to upgrade the network in preparation for transportation of hydrogen. SGI achieved a 5-star rating from GRESB in the most recent assessment round, demonstrating strong operational ESG performance against peers. Throughout the life of the loan the Company will provide annual reporting on a number of ESG KPIs including Scope 1/2/3 carbon emissions, board gender diversity and health and safety incident rates.

Albane Poulin, Head of European Private Placements at abrdn said: “We are delighted to support Ontario Teachers’ Pension Plan and Swiss Life in the refinancing of SGI. This investment allows us to support SGI’s capex plan to upgrade the existing networks in order to improve energy efficiency, ensure security of supply in Italy as well as preparation for energy transition. SGI benefits from an established and supportive regulatory framework in Italy with limited volume risk, which can provide a sustainable stream of cash flow to our clients.

“SGI will play a key role in the decarbonation of gas through transportation of hydrogen and biomethane in their pipeline. We are particularly excited to execute our first private credit transaction in Italy, underpinning a key strategic priority for abrdn to grow our core capabilities in real assets”

Manuel Dusina, Head of Infrastructure, Phoenix Group added: “Core defensive regulated assets like this in jurisdictions outside of the UK are a key element of our approach to diversification when building our portfolio. Investing in line with our sustainability agenda is also important to us, and this investment improves energy efficiency and upgrades in SGI’s network, and will play a vital role in the energy transition within Italy and Europe.”

Ends

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Debbie Cowe,

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+44 (0) 7711 774017

Notes to editors

At abrdn, we enable our clients to plan, save and invest for their futures.

We structure our business into three areas – and together they reflect our focus on enabling our clients to be better investors:

• Investments: We work with clients to create solutions across asset classes, regions and markets globally – combining multi-layered research and market insights with technology and diverse thinking.
• Adviser: We offer market-leading platform technology and tools that enable UK wealth managers and financial advisers to create more opportunity for their business and their clients.
• Personal: We help people throughout the UK plan for their financial futures – through our financial planning business and our digital investing services.

Across our investments, adviser and personal businesses we manage and administer £542 billion of assets for our clients, and abrdn plc has over 1 million shareholders. (Figures as at 31 December 2021)

Our investments are built on an insight strength that comes from multi-layered research and a large global footprint. Our teams collaborate across multiple capabilities, to create forward-thinking solutions that aim to meet our clients’ needs and deliver more sustainable outcomes. Our investments business manages £464 billion on behalf of individuals, governments, pension funds, insurers, companies, charities and foundations (as at 31 December 2021) – with support and expertise from 800 investment specialists in over 30 locations.

abrdn is the single global brand for all areas of our business. In July 2021 our plc listing became abrdn plc. In September our investments business, formerly Aberdeen Standard Investments, became abrdn.

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