The UK Infrastructure Bank is “open” to exploring options to allow pension scheme investors to buy its assets, although there is still more work to be done to make this a possibility, according to UK Infrastructure Bank CEO, John Flint.

Speaking at the PLSA Investment Conference 2022, Flint emphasised that the UK Infrastructure Bank is still “figuring out” how it can partner with pension scheme investors, emphasising that whilst the bank will be a “small piece of the puzzle” on the push to net zero, the pensions industry will “end up being a much larger piece”.

Flint confirmed that there is already one transaction that, through connections with someone working at the bank, has seen local pension fund managers brought in to invest alongside the bank, acknowledging that “there are some early stages there”.

“But I think we’ve got a bit more work to do before we figure out actually what the clearing mechanism is,” he clarified, suggesting that one thing that the bank would consider, is whether or not assets on its balance sheet are effectively available for sale to the industry.

Flint suggested that this is one way the bank can deal with the challenge of whether it is “crowding in or crowding out”, explaining that, given the banks mission is to make sure infrastructure is built as part of the push to net zero, these assets do not necessarily need to sit on its balance sheet.

“So we’re open to exploring that,” he continued, "if we have assets on our balance sheet we’ve originated and meet our standards, which also might meet your portfolios, we’d love to work on that idea as well.”

More broadly, Flint emphasised that work by the bank is continuing “at pace”, stating that clean energy will be the "dominant" focus of its five key priority sectors.

“We’re going at pace for the very simple reason that both aspects of our agenda our urgent, net zero and levelling up – they’re urgent and we’re a long way from where we feel we ought to be.”

However, Flint confirmed that the bank has already completed six transactions, with a “couple more” not yet announced, and “a pretty healthy pipeline through the rest of the year”, having already processed 438 different enquiries.

In addition to this, he confirmed that the bank will be publishing its strategy document over the next month, whilst its annual report can be expected after summer.

Responding to an audience question as to whether the work of the UK Infrastructure Bank could relieve pressure on the government to bring in good policy, Flint reassured the industry that this “is not the sense” he’s got.

“What you should expect from us as we build our capability is we should be a very effective communication method back into government,” he continued.

“We’ll be engaging with the market, and if it becomes clear to us that something needs to change, you should expect us to be communicating that in a very clear crisp and direct way back into government departments. We’ve got proven access.”

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