German construction company Bilfinger Berger is launching an international investment trust to capitalise on the boom in infrastructure spending.

Bilfinger Berger Global Infrastructure Sicav, domiciled in Luxembourg, is targeting up to £212 million in fundraising.

The fundraising will finish on 13 December, with the trust listing on the London Stock Exchange on 21 December.

It will initially target a 5.5 per cent annualised dividend yield, which the trust will aim to increase over time.

The trust will invest in up to 19 private finance initiative (PFI) and public private partnership (PPP) projects including roads, education, healthcare and prisons, with ‘long-term stable cashflows’ and ‘strong yield characteristics and attractive inflation protection’ characteristics.

The portfolio will be spread across sectors and countries. The UK, Canada and Australia will make up the bulk of the portfolio, with 41.4, 26.9 and 26.9 per cent invested respectively. The portfolio’s exposure to Germany will only be 4.8 per cent.

Bilfinger Berger will seed the new trust so that it has a 19.9 per cent stake in it when it launches.

Caroline Shaw, investment manager at boutique fund manager Courtiers, says the 5.5 per cent yield of the trust, generated from secure government revenue, is attractive, given that current government bond yields are at record lows.

‘It’s a diverse portfolio of assets, some roads, some bridges, some prisons, schools and hospitals, all of which will get paid provided they are open, so they are not dependent on the number of cars, usage, number of pupils, prisoners or patients. This is attractive too as it is more predictable than, say, a toll road,’ she says.

She adds: ‘It’s like a bond investment equivalent, and clients can relate to it too so its fairly easy to understand.’

The total expense ratio is anticipated to be approximately 1.5 per cent of net asset value (NAV).