International law firm Freshfields Bruckhaus Deringer has advised NIBC Bank on the successful restructuring and placement of a £620.6m Infrastructure Collateralised Loan Obligation (CLO) with a UK life insurance group. This unique arrangement is a market-leading example of banks and institutional investors co-operating to achieve long-term financing solutions.

The CLO is backed by UK Sterling loans to operational public-private partnership projects in the UK originated by NIBC. Headquartered in The Hague, NIBC also has offices in Brussels, Frankfurt and London.

Amsterdam-based partner Mandeep Lotay led the Freshfields team advising on the transaction.

Mandeep said, ‘NIBC originally devised the transaction in 2008. Through a sequence of restructurings, NIBC and Freshfields adapted the existing structure into a shape that fits the requirements of the institutional investor, NIBC and Moody’s Aaa(sf) rating. The project is indicative of a growing trend for financial institutions to involve institutional investors in developing long-term financing solutions.’

Christian Kepel, associate director at NIBC’s structuring team said, ‘Freshfields’ insight and practical approach were key ingredients to achieving this result.’