FRENCH insurer Axa said yesterday it plans to lend €10bn (£8.57bn) over the next five years for infrastructure projects as it seeks to diversify its credit portfolio.
The plan would represent a tenfold increase in Axa’s exposure to infrastructure debt, a company spokesman said.
The company will underwrite loans of up to €500m through its Axa Real Estate arm, each backed by assets in established global economies, to finance projects ranging from wind farms to sewers and water and transport networks.
Axa will first focus on loans in the Eurozone and Britain, moving on later to the United States and Asia.
Charles Dupont at Axa Real Estate will manage the firm’s new infrastructure debt platform.
“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,” said Laurent Clamagirand, Axa’s chief investment officer.
City A.M. Reporter