Prudential Regulation Authority Rulebook

1.

The requirements that must be met for an investment in an infrastructure entity to constitute a qualifying infrastructure corporate investment are as follows:

1. (1) the substantial majority of the infrastructure entity’s revenues is derived from owning, financing, developing or operating infrastructure assets located in the OECD;
2. (2) the revenues generated by the infrastructure assets satisfy one of the criteria set out in 3D2.2(1);
3. (3) where the revenues of the infrastructure entity are not funded by payments from a large number of users, the party which agrees to purchase the goods or services provided by the infrastructure entity must be one of the entities listed in 3D2.2(2);
4. (4) the revenues must be diversified in terms of activities, location, or payers, unless the revenues are subject to a rate-of-return regulation in accordance with 3D2.1(3)(a)(ii) or a take-or-pay contract or the revenues are availability based;
5. (5) where investments are in bonds or loans, the firm is able to hold the investment to maturity and, subject to 3D3.2, has notified the PRA of this in writing before it treats an investment as a qualifying infrastructure corporate investment;
6. (6) where no credit assessment from a nominated external credit assessment institution is available for the infrastructure entity:
   1. (a) the capital structure of the infrastructure entity must allow it to service all its debt under conservative assumptions based on an analysis of the relevant financial ratios; and
   2. (b) the infrastructure entity must have been active for at least three years or, in the case of an acquired business, it must have been in operation for at least three years; and
7. (7) where a credit assessment from a nominated external credit assessment institution is available for the infrastructure entity, such credit assessment has a credit quality step between 0 and 3.

2.

Where a firm treated an investment as a qualifying infrastructure corporate investment in accordance with Article 164b of Commission Delegated Regulation (EU) 2015/35 immediately before 31 December 2024 and from 31 December 2024 treats that investment as a qualifying infrastructure corporate investment, the firm must notify the PRA in writing by 31 January 2025.