Pension funds invest in motorway extension
Wednesday 05 September 2012
Two pension funds are to invest €130m in the extension of the N33 motorway between Assen and Zuidbroek, the Financieele Dagblad reports on Wednesday.
It is the first time pension funds have invested in road-building from the start of a project, the paper says.
Pension funds were always reluctant to invest in state infrastructure projects, but the civil service fund ABP and the healthcare fund Zorg en Welzijn were persuaded by offers of inflation-proof loans, where the pension funds receive compensation for inflation in return for a lower interest rate.
'We are pleased this has worked out,' a spokesman for fund manager APG told the paper. 'We hope the door is now open for larger investment projects.'
The N33 will be twice as wide and the new lanes will open in 2015.