Infrastructure debt

Seeking robust, long-term cash flows in infrastructure debt

We have broad lending and origination capabilities, and deep market relationships built over two decades. This allows us to offer a range of senior debt investments in pan-European and Canadian investment-grade and sub-investment-grade infrastructure projects in a variety of formats that aim to provide strong, stable returns and downside protection.  

Our size and established reputation for delivery means we see most European financing opportunities. That allows us to source off-market transactions which can provide a diversified and stable source of returns.

We incorporate environmental, social and governance considerations in our investment decisions and project monitoring.

Why invest?

Infrastructure debt investments have a low correlation to market cycles, matching long-dated assets and providing predictable income streams. Given the asymmetric risk profile of debt investing, our investment philosophy centres on managing downside risk, so we lend against core assets with asset security. Strong financial covenants are integral to our approach, and we avoid highly subordinated debt positions. At the same time, we selectively embrace emerging sectors and structures that may offer attractive complexity or novelty premia within a disciplined risk framework.

Inflation Protection

Many infrastructure debt structures offer robust cash-flow profiles with inflation-linked escalators, to hedge inflation risk in their liabilities.

Long-term debt is ideal to match long-dated liabilities and can provide predictable income from project cash flows.

Low default risk

We prioritise senior debt in carefully structured transactions. Since we began investing in infrastructure debt, we have not had a single payment default or realised loss in the portfolio we originated. This includes more than 270 transactions since inception of the activity in 1999 (as of September 2025). 

Diversification

Private infrastructure debt has a low correlation to listed corporate bonds and is more resilient to market and credit cycles. This allows investors to access emerging technologies across the energy transition and digital infrastructure, with strong income generation.

Illiquidity premium

For investors looking for stability and long-term opportunities, infrastructure debt rewards patient capital with an attractive illiquidity premium, typically offering higher yields than listed credit.

Favourable solvency capital treatment

For insurers, as well as the ability to match liabilities with long-term, reliable cash flows, the asset class receives favourable capital treatment under Solvency II. Other regulators are considering similar measures.

We can also incorporate relevant local regulatory frameworks, such as the Solvency II Matching Adjustment requirements and Risk-Based Capital standards.

Find out more about our private markets capabilities

Key risks of infrastructure debt

Investment risk

The value of an investment and any income from it can go down as well as up and can fluctuate in response to changes in currency and exchange rates. Investors may not get back the original amount invested.

Illiquidity risk

Where funds are invested in infrastructure, investors may not be able to redeem when they want because infrastructure assets may not always be readily saleable. If this is the case, we may defer a redemption request.

Valuation risk

Certain assets could, by nature, be hard to value or to sell at a desired time or at a price considered to be fair (especially in large quantities), and as a result their prices could be very volatile.

Regulatory shifts

The frameworks for managing essential infrastructure services can change.

Investment insights

Investment thinking that brings together the collective insight of Aviva Investors’ teams from across the globe on the key themes influencing markets.

Views

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In this article Viktor Dietrich, Research Director for infrastructure, venture capital and natural capital, revisits the case for investing in European infrastructure equity. He suggests reasons why small-to-mid-sized opportunities should feature prominently on investors’ radar.
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In our latest private markets deep dive, our research team crunches the data to see how evolving macro conditions are reflected in private debt returns.
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