Al Khan ... making sustainable investments

Infracorp, the sustainable infrastructure platform of Bahrain based GFH Financial Group (GFH), has invested in one of the largest industrial electricity distribution networks in the Nordics region.

The joint investment was made with Equitix in Aurora Infrastructure (Aurora), a well-established monopoly electricity distribution network operating in two key geographical areas of Finland. 

Aurora serves a blue chip international industrial client base that are highly committed to the network and which have invested more than €4.5 billion combined in the company’s two sites — AKO and ATO — since 2005.

The AKO site serves government backed and/or listed customers in traditional fuels, renewable fuels and chemical products segments, with its main clients being Neste, Borealis, Linde and Veolia. Meanwhile, the ATO network serves Outukumpu, the largest integrated plant and the only fully integrated stainless steel facility in the world.

There is no alternative electricity distribution network available to its customers at these sites making this a unique asset.

Aurora’s electricity distribution network represents physically irreplaceable assets that are supported by long-term contracted cash flows, high-margins and a semi-regulated tariff structure, inflation and interest rate pass-throughs, significant barriers to entry and inelastic demand profile.

Consistent with Infracorp’s focus, Aurora has a strong ESG basis and also benefits from the commitment of the company’s customers to ESG principles with well-publicised strategies on decarbonisation of their on-site operations underpinned by further electrification.

Infracorp will also enter into future collaborative discussions with Equitix, a leading global investor and long-term fund manager of core infrastructure assets.

Equitix has over $11.7 billion of assets under management and is the infrastructure investment division of Tetragon, the global asset management group, which manages $80 billion of assets on behalf of its clients.

Infracorp aims to explore possible further opportunities to work with Equitix to invest in select infrastructure deals on a discretionary basis.

This will help strengthen Infracorp’s global infrastructure investments platform in Europe and the Americas across a range of defensive and downturn resistant infrastructure sector investments.

Commenting on the investment, Majed Al Khan, CEO of Infracorp, says: "In line with our vision, we’re pleased to announce this investment in Aurora, which provides critical power distribution infrastructure for strategic blue-chip industrial customers committed to energy transition in Finland, including the two single largest electricity consumers in the Nordics.

Hugh Crossley, CEO at Equitix, says: "We are pleased to work with GFH and Infracorp on this excellent investment, which provides critical electricity network to the Finnish economy. The investment opportunities in infrastructure remain extensive and Equitix is uniquely structured to source and execute core infrastructure investments, manage them responsibly and deliver outstanding risk-weighted returns.  We look forward to collaborating with GFH further.  Equitix values the partnership and there is ample opportunity to explore a pipeline of attractive opportunities across the UK, Europe and the Americas together."