Morgan Stanley Infrastructure Announces Sale of Madrileña Red de Gas

New York —

 

Morgan Stanley Infrastructure, the dedicated infrastructure investing platform of Morgan Stanley, announced today that it has agreed to sell, together with co-shareholders, 100% of Madrileña Red de Gas ("MRG"), a Spanish gas distribution company, to a consortium formed by EDF Invest, Gingko Tree Investment Ltd, and Dutch pension fund manager PGGM (“the Consortium”) for an undisclosed consideration.

The acquisition is being financed through equity only and the Consortium has confirmed that it is their current intention to maintain the Notes issued by MRG at or above its current investment grade rating. The transaction is expected to close in May 2015.

MRG is the only pure play gas distribution company in Spain, operating a 5,500 km network of medium- and low-pressure pipelines serving approximately 842,600 connection points in 59 municipalities of Spain’s capital, Madrid, on the basis of perpetual licenses.

Morgan Stanley Infrastructure originally formed MRG through the acquisition of certain gas distribution operations associated with 505,000 gas connection points in 2010 and 303,000 connection points in 2011, making MRG the second-largest gas distributor in Madrid and the third largest in the country.

About Morgan Stanley Infrastructure

Morgan Stanley Infrastructure is a leading global infrastructure investment platform. Morgan Stanley Infrastructure employs an established, disciplined process to invest in diverse infrastructure assets in predominantly OECD countries and seeks to create value through active asset management and operational improvements. Morgan Stanley Infrastructure’s team, one of the largest in the industry, is based in New York, London, Melbourne, Hong Kong, Amsterdam and Mumbai. Team members possess considerable knowledge and experience with respect to investing in and managing infrastructure assets and leverage their own senior-level relationships as well as the unparalleled global network of Morgan Stanley to source investment opportunities. Morgan Stanley Infrastructure is part of Morgan Stanley Merchant Banking & Real Estate Investing.

Morgan Stanley Merchant Banking & Real Estate Investing (MB&REI) is Morgan Stanley’s direct private investing group that puts capital to work on behalf of a diverse client base, including governments, institutions, corporations, and individuals worldwide. MB&REI employs a consistent, proven value-creation approach across a full range of strategies, including private equity, real assets, and credit. From 22 locations around the world, over 400 experienced professionals with extensive private markets expertise and access to Morgan Stanley’s global franchise provide an unparalleled network to source investment intelligence and opportunities. MB&REI’s deep resources include best-in-class reporting, operations, and risk management, providing investors with a comprehensive approach to disciplined investing.

Morgan Stanley (NYSE: MS) is a leading global financial services firm providing a wide range of investment banking, securities, wealth management and investment management services. With offices in more than 43 countries, the Firm’s employees serve clients worldwide including corporations, governments, institutions and individuals. For further information about Morgan Stanley, please visit www.morganstanley.com.

About EDF Invest

Created in July 2013, EDF Invest is the unlisted investment arm of EDF’s Dedicated Assets, the asset portfolio which covers its long-term nuclear decommissioning commitments in France. EDF Invest targets three asset classes: Infrastructure, Real Estate and Private Equity. Its Infrastructure portfolio already includes a 50% stake in RTE, the French electricity transmission company, as well as minority stakes in TIGF, the French gas transport and storage company acquired in 2013 from Total, and Porterbrook, one of three main rolling stock companies (ROSCOs) in the UK acquired in 2014.

About PGGM

PGGM is a cooperative Dutch pension fund service provider. Institutional clients are offered: asset management, pension fund management, policy advice and management support. On 1 February 2015, PGGM has EUR 188.7 billion in assets under management. The PGGM cooperative has approximately 686,000 members and is helping them to realize a valuable future. Either alone or together with strategic partners, PGGM develops innovative future provisions by linking together pension, care, housing and work.

www.pggm.nl

Hugh Fraser, +44.20.7425. 3923; Matt Burkhard, + 1.212.761.2444

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