Aflac Global Investments, the asset management subsidiary of Aflac Inc., has formed a partnership with Denham Capital — a global sustainable infrastructure, energy and resources investment firm — to expand the Denham sustainable infrastructure’s business. Aflac Global Investments has made a $2 billion commitment to Denham Sustainable Infrastructure to launch a new debt platform that will invest primarily in the senior debt of sustainable infrastructure projects and has committed $100 million toward Denham’s second dedicated equity fund to support the acquisition, enhancement and development of sustainable infrastructure assets. Aflac Global Investments will also hold a non-controlling 24.9 percent minority equity interest in Denham sustainable infrastructure.
Eric Kirsch, Aflac Inc. executive vice president, global chief investment officer and president of Aflac Global Investments, said, “Part of Aflac Global Investments’ long-term growth strategy is to identify and partner with successful third-party managers like Denham, which has a track record and is a leading asset manager of infrastructure assets. The nature of these asset classes will enable us to capture higher yields while providing enhanced credit protection, adding value to our portfolio and to our stakeholders, while advancing our ESG priorities. In addition, our equity stake enables Aflac to participate in the expected growth of an attractive asset management partner in a growing asset class while broadening our sustainability exposure and commitments.”
Stu Porter, founder, managing partner, CEO and CIO of Denham Capital, said, “Now is the optimal time for this transaction as we look to provide solutions across all parts of the capital structure. The partnership with Aflac will trigger the rapid growth of our Sustainable Infrastructure platform, enabling Denham to play a pivotal role in accelerating the transition toward an electrified, clean economy. Global demand for assets which fulfill ESG objectives has significantly bolstered the need for investing in sustainable infrastructure, and as such, we expect energy transition initiatives and investment into sustainable infrastructure to increase materially well into the future. Our expanded Sustainable Infrastructure strategy will focus on markets where we see the biggest growth opportunity, and we believe we can make the biggest positive impact. Denham looks forward to partnering with Aflac as we seek to address climate change with capital, infrastructure and technology.”