INSURANCE giant AXA today announced that it plans to invest €10bn (£8.5bn) over the next five years in the infrastructure debt market.
AXA Real Estate, the real estate arm of AXA Investment Managers, will manage the investments. AXA Real Estate aims to underwrite loans of up to €500m backed by assets located in established global economies.
The plan is part of the group’s credit diversification strategy, coming after a 2005 initiative on commercial real estate debt and the 2012 launch of a pan-European mid-cap corporate loan platform.
“Our decision to increase our exposure to the infrastructure debt asset class is in line with our global investment strategy,” said Laurent Clamagirand, AXA Group Chief Investment Officer.
“It meets our need to find long-term investments and diversify our credit portfolio in order to match the guarantees we offer our clients, and also demonstrates the role insurance companies can play in financing the real economy.”