In our view, the market for financing infrastructure is at an early stage of development:

Public Private Partnerships

Public Private Partnerships will be an important mechanism for developing, operating and financing infrastructure projects.

Return Premium

The lack of an organized trading market for infrastructure securities offers a return premium to investors.

Long-Tenor Debt

In order to ensure their delivery of public services over the long-term, local government sponsors will manage financing risk by seeking long-term debt as a permanent source of capital to finance infrastructure projects.

Removal of Obstacles

  • Government sponsors will eliminate subsidies to viable infrastructure projects
  • Project sponsors will actively reduce the risk of asset/liability mismatch
  • Standard security structures will replace non-standard structures