FINANCING THE NEXT SUEZ CANAL www.jimdewilde.net ROTMAN CLASS October 25, 2011
FINANCING THE NEXT SUEZ CANAL
www.jimdewilde.net
ROTMAN CLASS October 25, 2011
New financing models Innovation in municipal bonds Public private partnerships (learning from
Eurotunnel)
New projects Korean financing and ADB
Investing in Infrastructure
There is an asset category which institutional investors now
like called infrastructure funds. From the profitable privatization of airports to the development of smart roads or toll roads as a profitable investment strategy, this has produced a series of interesting case studies:
(1) (VIENNA AIRPORT privatization, ITALIAN TOLL ROADS); (2) Brazilian and India infrastructure funds become an
increasing part of the investment scene as a play on “emerging” market growth;
(3) Governments with declining tax-bases (e.g. U.S. states) seek privatization of infrastructure as a way to shift expensive categories (water system reconstruction) to potential sources of revenue.
Infrastructure Investment as an asset category - I
These issues become an essential part of the capital market moving forward and a
significant new component of effective investment banking.
(1) How to finance the building of bridges in Montreal, where the financing of south shore bridges becomes a cornerstone of economic development and avoid the EUROTUNNEL situation.
(2) How Indiana, generally considered a well-run state looks to take advantage of its positive image in the bond market to reconstruct infrastructure;
(3) Why infrastructure (roads, ports, railways) become a cornerstone of investment strategies in global high-growth regions (picking Pernambuco in Brazil as a case study) and
(4) how Ontario has become a global centre for infrastructure finance. The concentration of infrastructure financing expertise in Toronto is a topic worth exploring, given the role here of Macquarie ?
http://www.macquarie.com/mgl/mig , CPPIB http://www.cppib.ca and other
Issues of infrastructure finance - II
CASE STUDY #1 INFRASTRUCTURE AND PRIVATIZATION :
www.global-infra.com GLOBAL INFRASTRUCTURE PARTNERS Fund backed by GE and Credit Suisse.
CASE STUDY #2 INDIANAPOLIS ?http://www.bondbuyer.com/issues/119_271/Indianapolis-Local-Public-Improvement-Bond-Bank-1006801-1.html
CASE STUDY #3 SMART ROADS as an investment category http://seekingalpha.com/article/267316-for-whom-the-road-tolls-reviewing-listed-toll-roads-bridges-and-tunnels and http://www.matternetwork.com/2010/5/smart-roads-path-super-efficient.cfm
CASE STUDY #4 FROM VIENNA AIRPORT TO CENTRAL EUROPEAN INFRASTRCUTURE TUNNELS IN AUSTRIA http://www.ft.com/intl/cms/s/0/5cc52b7a-e084-11e0-bd01-00144feabdc0.html#axzz1bRPZvCfs
CASE STUDY #5 PORTFOLIO of 3i INFRASTRUCTURE FUND http://www.3i-infrastructure.com/disclaimer.html?r=/portfolio-summary.html
CASE STUDY #6 VENTURE CAPITAL TRUSTS as a funding innovation in municipal markets http://www.ft.com/intl/cms/s/2/fea4c434-fb35-11e0-8df6-00144feab49a.html#axzz1baslVWd0
CASE STUDY #7 INDIAN INFRASTRUCTURE http://www.ft.com/intl/cms/s/0/62739a58-f58c-11e0-94b1-00144feab49a.html#axzz1bRPZvCfs
CASE STUDY #8 PERNAMBUCO (one more let's-look-at-the-map) http://www.brazilinvestmentguide.com/blog/2011/02/pernambuco-brazil’s-fastest-growing-state-real-estate-land-property/
CASE STUDIES ON NEW INFRASTRUCTURE
Lights! Water! Motion!
STRATEGY AND BUSINESS
“The world’s urban infrastructure needs a $40 trillion makeover. Here’s how to reinvigorate our electricity, water, and transportation systems by integrating finance, governance, technology, and design”.
Booz Allen on Infrastructure – Trillions of dollars of Global Demand
Macquarie comes to Canada to do infrastructu
re CPPIB does infrastructure CPPIB buys Auckland Airport (NEW ZEALAND)
$1.8 billion
Canadian Institutional Investors do Infrastructure exceptionally well
www.global-infra.com CREDIT SUISSE and GENERAL ELECTRIC http://www.terra-genpower.com
http://www.gatwickairport.com http://www.chkm.com www.biffa.co.uk http://www.eastindiapetro.com http://www.i-p-h.co.ukInvestments made through IPH to date are: http://www.portbris.com.au/ http://www.itl.com.ar www.eastportuk.co.uk www.londoncityairport.com
Global Infrastructure Partners – a case study in portfolio management
Pernambuco geography
Roads Railways and Ports in Brazil
http://articles.economictimes.indiatimes.com/2011-
01-28/news/28431941_1_inclusive-growth-private-sector-india-targets
India targets $1 trillion infrastructure investment: Ahluwalia
DAVOS: India will double its investments in infrastructure to $1 trillion during the 11th Five Year Plan that begins 2012, with half of that expected from the private sector, Planning Commission Deputy Chairman Montek Singh Ahluwalia has said.
Indian Infrastructure
Financing from future revenues Railways for Africa Ports for Pernambuco Bridges everywhere
Underwater cities Megacities become Zero Waste infrastructure Incinerators, pipelines, sewage and smart
grids
The Next Suez Canal