It’s been the Holy Grail of infrastructure financing ever since the global financial crisis reshaped the banking landscape: how to get the capital markets to take over from banks as long-term providers of debt for infrastructure public-private partnerships (PPP)?
The obstacles have certainly been daunting: with the collapse of the monoline insurers, institutional investors, ill-equipped to deal with traditional infrastructure risks like construction, have shied away from entering deals.
Answering a funding conundrum
France’s plans to launch a state-sponsored securitisation vehicle for the refinancing of PPP debt post-construction could end up being the long-awaited solution to bring the capital markets back into infrastructure financing. By Bruno Alves
