EPIC will own a stake of Thames Water.
The initial yield of EPIC is expected to be 9.10% fully hedged in New Zealand dollars.
EPIC describes this as an attractive yield, and it is one of the first new funds to come to market pushing its portfolio investment entity (PIE) credentials.
Thames Water PLC operates the largest water and wastewater services company in the United Kingdom. It was acquired in December 2006 by a consortium led by Macquarie.
EPIC is offering 96.7 million shares at $1.00 each under the IPO, which will be used to complete the acquisition of an indirect 1.22% holding in Thames Water.
EPIM Director and former NZ Superannuation Fund guardian, Ira Bing, says EPIC gives investors “access to an investment in a mature and essential piece of United Kingdom infrastructure that supplies drinking water to more than eight million people and wastewater services to 13 million people in London and surrounding areas.”
“This is an innovative offer because it gives New Zealand investors the ability to invest in Thames Water, the only water and wastewater service provider within its respective licence areas covering London and Thames Valley, from Kent in the east to Gloucestershire in the west, with more than 98,000 kilometres of water and wastewater mains.
Bing said New Zealand investors have an opportunity to benefit from the ability to diversify away from traditional investments and the New Zealand economy.
Kerr says there is also potential for capital growth in this investment with management focused on responsible and sustainable growth and backed by the management and financing expertise of the Macquarie Group.
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