AMP Capital has originated and closed a significant investment in a junior HoldCo facility secured against Peel Group’s 37.6% stake in Peel Ports, one of the largest port operators in the UK, on behalf of AMP Capital Infrastructure Debt Fund IV (IDF IV).

In 2019 Peel Ports handled just under 70 million tonnes of cargo with a 14% market share of the UK’s total port traffic, making it the second largest port group in the UK. Its seven ports serve a broad variety of customers and handle a diversified range of cargoes, from locations in Liverpool, Manchester, London Medway, Glasgow, Dublin and Great Yarmouth.

Peel Ports is the dominant port operator in the North West of the UK and is strategically positioned for trans-Atlantic traffic. The company operates through the core business segments of ports and shipping. The core ports business has a diverse mix of cargo types handled by all ports meaning there is no reliance on any one commodity. As such, there is reduced concentration risk, and a reduced impact from global macro forces and commodity cycles. The shipping division operates container vessels that provide short sea container services between the UK, Ireland and mainland Europe which complement the ports business by driving additional volumes through its core port locations.

Emma Haight-Cheng, Head of Infrastructure Debt, Europe commented: “Peel Ports is an exceptional asset for our investors, representing a very well-managed, robust business with highly diversified business segments. The variety of cargo types provides resilience in the business, as demonstrated by its solid growth rates through different macroeconomic cycles. Peel Ports benefits from solid long-term relationships with a highly diversified, blue-chip client base in key strategic locations in the UK; its ports have excellent connectivity with nationwide access to key commercial centres and highly populated areas of the UK.”

AMP Capital were advised by Clifford Chance. Peel Group were advised by Travers Smith.