The infrastructure sector is entering an exciting new era, with five clear trends emerging for investors and lenders.
The infrastructure sector is entering an exciting new era, with more opportunities to deploy creative capital, infrastructure debt gaining ground, a promising US market and offshore wind gaining momentum. Dean Kennedy, Product Management, Corporate Trust, EMEA and Bryan Gartenberg – Head of PF Sales Americas, Deutsche Bank recently spoke to leading industry magazine Infrastructure Investor about the full impact of these trends.
In their interview with the journal, five clear trends emerged for investors and lenders:
#1 The European Investment Bank has been instrumental in creating opportunities for institutional investors in infrastructure, but look out for other structures being used on Greenfield projects
#2 US infrastructure development looks set to be a big focus
#3 Debt funding will continue to dominate in Europe, benefitting from government support
#4 The UK and Germany will continue to benefit from good infrastructure project pipelines
#5 Offshore wind will be an increasingly important sector but the risks need to be better understood
Despite question marks over its ability to compete with fossil fuels, offshore wind’s risks need to be better understood. Low bids for the Netherlands’ Borssele project (sites III & IV) highlights the competitiveness in the Dutch tender system which could lead to more bullish offers across Europe. There are engineering risks that are unique to building offshore that don’t exist in onshore. But that can be managed.
To read the full Q&A interview with Infrastructure Investor, please click here.
Product Management, Corporate Trust, EMEA at Deutsche Bank
Head of PF Sales Americas, Deutsche Bank
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