Aviva vehicle in first secondary debt deal

Aviva Investors has bought €84.5m of senior secured notes issued in a private placement by Dutch telecoms firm Reggefiber.

Aviva Investors, the asset management arm of UK insurer Aviva, has acquired €84.5 million of privately placed senior secured notes issued by Reggefiber, the Dutch telecommunications infrastructure provider.

The deal is the first to be completed by Aviva Investors’ European Secondary Infrastructure Credit SV, a securitisation vehicle launched by Aviva in July this year.

The transaction serves to refinance a short-term construction bridge facility which was provided by Dutch bank ABN AMRO and provides long-term capital for Reggefiber to continue expanding its fibre-to-the-home (FTTH) networks.

The deal is Reggefiber’s first in the capital markets, having previously obtained debt financing via project finance facilities in the banking market. The notes – placed exclusively with Aviva Investors – comprise a fixed-rate tranche and floating-rate tranche, both with a 10-year tenure.

Reggefiber is a joint venture between Dutch telecom firms KPN and Reggeborgh which was established in 2005. It builds, owns and operates FTTH networks in the Netherlands and has connected more than 1.5 million homes to an open-broadband network. It also manages an open access fibre optic network for KPN and other telecom operators.

“This senior debt investment in an operational infrastructure asset fits well within the investment focus of our recently closed European Secondary Infrastructure Credit product,” said Florent del Picchia, fund manager for infrastructure at Aviva Investors.