The IMA has announced that several of its members, including Aviva, Allianz Global Investors and Standard Life, are due to invest roughly £9bn in UK private placements over the next five years.
It comes after chancellor George Osborne revealed that there would be a new exemption from withholding tax for interest on private placements, a type of non-bank debt financing, in yesterday’s Autumn Statement.
Daniel Godfrey, chief executive of the IMA, called the measure “a significant boost to the development of the UK private placement market – unlocking crucial capital for UK businesses”.
He added: “The IMA’s members are major investors in UK businesses and infrastructure; having worked closely with members, we can announce that over the next five years Allianz Global Investors, Aviva, Friends Life, Legal & General, Prudential and Standard Life intend to make investments of around £9bn in private placements and other direct lending to UK companies.”
