Industry Funds Management (IFM) has invested $20 million in Victoria's desalination plant through its Alternative Fixed Income Fund.
Infrastructure debt is now a viable investment following the global financial crisis (GFC), according to IFM executive director Robin Miller.
"Infrastructure debt was not an attractive investment option leading up to the GFC. Credit spreads were too tight and there were poor covenants in place," he said.
"Market movements under the GFC addressed these issues. This has put infrastructure debt back on the radar for investors."
IFM is backed by 36 industry superannuation funds.
Victoria's desalination plant will be developed through a public private partnership model.
The AquaSure consortium, which includes Macquarie Capital, will manage the plant.
Construction of the plant began in September last year and is set to deliver water by the end of 2011.
