Hastings secures Japanese debt commitment

The mandate obtained from two strands of Japan’s development bank builds on a similar partnership sealed with Sumitomo Mitsui Trust Bank a little over two years ago.

Australian manager Hastings Funds Management has received a mandate from the Development Bank of Japan to invest in infrastructure debt.

The Melbourne-based firm will invest in OECD countries on behalf of both DBJ and DBJ Asset Management, the bank’s real estate, private equity and infrastructure institutional investment arm. The commitment was undisclosed.

Hastings’ chief executive Andrew Day said he expects an expansion of the relationship with DBJ over the coming years, adding that the investment marks a “rapid extension of our Asian footprint”.

The fund manager’s relationship with Japanese investors began in December 2014, when Sumitomo Mitsui Trust Bank became its first client. Hastings and SuMi Trust reached a first close at the time on two debt funds respectively targeting junior and senior European infrastructure debt. In total, they raised JPY25 billion ($218 million; €205.3 million).

As well as backing infrastructure in its domestic market, DBJ’s previous forays in the asset class have included joint investments with Masdar, Abu Dhabi’s renewable energy vehicle. The bank was also an LP in Meridiam’s $1 billion North America-focused fund.

Hastings’ infrastructure debt business comprises A$3 billion ($2.3 billion; €2.1 billion) invested across 40 assets, as of the end of January.