Canada-based Stonebridge Financial Corp. has launched its second fund, Stonebridge Infrastructure Debt Fund II, with a $300 million fundraising goal. An initial closing will be held in December 2013. A subsequent closing will occur within 12 months of the initial closing to accommodate additional interested investors.
Stonebridge currently manages Stonebridge Infrastructure Debt Fund I, a closed-end infrastructure debt fund developed with the support of PPP Canada. Fund I provides private debt financing for the construction and operation of social infrastructure and energy assets. Fund I closed in 2012 with capital commitments totaling approximately $201 million. Investors include the Business Development Bank of Canada, Teamsters Canadian Pension Plan and six other Canadian pension funds.
Similar to Fund I, Fund II will invest in fixed-rate, senior construction and/or take-out debt financings on a private placement basis, with a minimum external or internal credit rating of BBB, incurred and applied for the purpose of the construction, operation, ownership or maintenance of infrastructure assets that are, generally, essential in nature to local communities or regional or national populations, and are expected to generate relatively stable and predictable cash flows over the long term. Potential assets include social infrastructure such as hospitals, long-term care facilities, schools, universities, correctional facilities, courthouses, subsidized housing, community centers, recreational facilities, roads, bridges, airports, mass transit, and water and waste management systems; and energy infrastructure such as public or private producers of non-merchant-based energy, pipelines, transmission and distribution lines.
Stonebridge is an independent financial services company specializing in arranging and structuring debt financings for syndication in the Canadian institutional marketplace, with a focus on the energy and social infrastructure sectors.