www.jimdewilde.netROTMAN CLASS October 25, 2011
Investing in Infrastructure New financing models Innovation in municipal bonds Public private partnerships (learning from Eurotunnel) New projects Korean financing and ADB
Infrastructure Investment as an asset category - I 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.
Issues of infrastructure finance - II 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
CASE STUDIES ON NEW INFRASTRUCTURE 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 lets-look-at-the- map) http://www.brazilinvestmentguide.com/blog/2011/02/pernambuco-brazil’s-fastest-growing-state-real- estate-land-property/
Booz Allen on Infrastructure – Trillions of dollars of Global Demand Lights! Water! Motion!STRATEGY AND BUSINESS“The world’s urban infrastructure needs a $40 trillionmakeover. Here’s how to reinvigorate our electricity,water, and transportation systems by integratingfinance, governance, technology, and design”.
Canadian Institutional Investors do Infrastructure exceptionally well Macquarie comes to Canada to do infrastructure CPPIB does infrastructure CPPIB buys Auckland Airport (NEW ZEALAND) $1.8 billion
Global Infrastructure Partners – a case study in portfolio management 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.uk Investments made through IPH to date are: http://www.portbris.com.au/ http://www.itl.com.ar www.eastportuk.co.uk www.londoncityairport.com
Indian Infrastructure 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.
The Next Suez Canal 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