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Investment bankingJanuary 2 2008

Constructing new routes

Infrastructure finance has formed an important part of the mergers and acquisitions (M&A) boom of recent years. According to Thomson Financial, the value of infrastructure-related deals exceeded $300bn globally both in 2006 and 2007. Despite these record levels of investment, there is no sign of the demand for infrastructure assets relenting as financial sponsors, notably specialist infrastructure funds, continue to drive the growth of the market.
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Meanwhile, the Organisation for Economic Co-operation and Development (OECD) has called for governments to turn increasingly to private financing for infrastructure. According to the OECD, the world will need to spend 2.5% of GDP up to 2030 on telecoms, road, rail, electricity and water. Another 1% will have to be spent on energy infrastructure, and yet more money on other areas such as ports and airports. Yet infrastructure specialists cannot ignore the implications of the credit crunch. These and other themes were explored at The Banker’s round table on the future of infrastructure finance on November 27, 2007. The debate was sponsored but independently edited and written.

Watch the video 

This is an edited video of the discussion from The Banker's Environment & Resources section. Click below to view more:

THE PARTICIPANTS:

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Neil Sen, contributing editor, The Banker
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Martin Stanley, chief executive, Macquarie’s European Infrastructure Funds
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Olivier Delfour, managing director and global head of infrastructure, Fitch Ratings
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Paul Davies, partner, PricewaterhouseCoopers
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Andrew Rose, head of projects, Partnership UK
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Nick Bliss, partner, Freshfields Bruckhaus Deringer
  • Defining infrastructure
  • High premiums, but no bubble
  • More investment is needed in infrastructure
  • Managing regulatory risk is central to infrastructure investment
  • The liquidity crisis will not have a big impact on infrastructure – yet
  • Defining infrastructure
  • High premiums for infrastructure assets, but no bubble
  • More investment is needed in infrastructure
  • Managing regulatory risk is central to infrastructure investment
  • The liquidity crisis will not have a big impact on infrastructure – yet

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