Morgan Stanley Infrastructure Announces Sale of Madrileña Red de Gas

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The FINANCIAL — Morgan Stanley Infrastructure, the dedicated infrastructure investing platform of Morgan Stanley, announced today that it has agreed to sell, together with co-shareholders, 100% of Madrileña Red de Gas (“MRG”), a Spanish gas distribution company, to a consortium formed by EDF Invest, Gingko Tree Investment Ltd, and Dutch pension fund manager PGGM (“the Consortium”) for an undisclosed consideration.

The acquisition is being financed through equity only and the Consortium has confirmed that it is their current intention to maintain the Notes issued by MRG at or above its current investment grade rating. The transaction is expected to close in May 2015, according to Morgan Stanley.

MRG is the only pure play gas distribution company in Spain, operating a 5,500 km network of medium- and low-pressure pipelines serving approximately 842,600 connection points in 59 municipalities of Spain’s capital, Madrid, on the basis of perpetual licenses.

Morgan Stanley Infrastructure originally formed MRG through the acquisition of certain gas distribution operations associated with 505,000 gas connection points in 2010 and 303,000 connection points in 2011, making MRG the second-largest gas distributor in Madrid and the third largest in the country.


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