GIIA Members’ Assets Exceeds $750bn

The 2020 edition of the GIIA / EY Global Asset Database reveals that GIIA members assets under management has exceeded US$780bn – comprising more than 1,500 assets across 55 countries.

This is an increase of more than £120bn since 2018/19.

The GIIA / EY Global Asset Database shows that GIIA members own, operate and invest in:

  • More than 100 airports serving more than 1 billion passengers annually
  • Utility companies serving 86.3 million customers
  • 321 ports moving more than 500m tonnes of cargo
  • 56,100MW of wind power, 18,600MW of solar power and 12,400MW of hydro power and biomass

CLICK HERE TO VIEW THE 2019/20 GIIA / EY GLOBAL ASSET DATABASE FACTSHEET

Speaking on the release of the GIIA / EY Global Asset Database CEO Lawrence Slade said the results showed the value of private investment in infrastructure.

“At a time when Government balance sheets are under enormous pressure, the private sector has the available capital, experience and innovative ideas to deliver the environmental and socially responsible infrastructure needed for future generations.”

GIIA’s global membership has also continued to increase in 2019/20 with the addition of members from across traditional markets as well as Japan and India.

 

GIIA is grateful to EY for their support in putting together this information.

 

Financing America’s Infrastructure Future

GIIA CEO Lawrence Slade spoke about the opportunities for US States to drive inward investment through partnerships with private infrastructure investors during a panel discussion convened by the National Governors Association on 24th June.

The Infrastructure Financing Summit, a centre-piece of National Governors Association Chairman, Governor Larry Hogan’s year-long Infrastructure: Foundations for Success initiative, focused on leveraging private sector investments, and how governors can help ensure that their states have access to the full range of infrastructure financing options.

Joining the panel with Lawrence were Governor Doug Ducie, Arizona, Governor Ralph Northam, Virginia and Global Head of Corporate & Business Development for Cintra, Carlos Ugarte.

Noting that private infrastructure currently has a proportionately smaller role in the US when compared to other markets around the World, Lawrence said there are multiple funding models that could be deployed to suit specific circumstances for individual states, including more rural states.

“Working with private investors will allow individual States and Governors to access significant funding that comes with unrivalled experience about how to economically manage, develop and operate both existing and new infrastructure and responsibly add value to communities,” said Slade.

Watch the full panel here – Financing America’s Infrastructure Future (Panel 1)

Investable Infrastructure Senior Leadership Group

GIIA hosted the first of a planned series of meetings between international investors and Lord Grimstone of Boscobel, Minister of State for Investment on June 24th. More than a dozen international investors gathered on a virtual roundtable with the Minister and senior officials from the Department for International Trade to discuss the important role that private investment will play in supporting the economic recovery to the COVID-19 pandemic, creating jobs, and delivering the infrastructure we need for future generations.

This was the first in a series of engagements for the Investable Infrastructure Senior Leadership Group planned through the rest of 2020 and beyond, where GIIA will be working with the Minister in his joint portfolio across the Department for International Trade and the Department for Business Energy and Industrial Strategy to seek to identify the opportunities and most effective mechanisms to support more investment into UK infrastructure.

The Investable Infrastructure Senior Leadership Group exists to convene senior figures from industry, domestically and internationally, who have a clear remit to invest in UK infrastructure. Members are drawn from across GIIA’s global membership.  Those represented at the first meeting are collectively responsible for over US$300bn in assets under active management across 43 countries.

Emerging Leaders in Infrastructure Investment

GIIA is today launching an Emerging Leaders in Infrastructure Investment (ELII) network; a member-led organisation aimed at young professionals who are working within the infrastructure investment sector.

The aim of the ELII initiative is to provide these emerging leaders with a platform for peer to peer networking, building thought leadership and shaping the future of the sector.

ELII aims to be a forward-thinking, influential voice in the infrastructure investor debate, bringing together talented individuals early in their careers who can bring fresh perspectives and new ideas to guide the sector’s development. These individuals should reflect not only the range of professions within the sector but also GIIA’s global reach.

The following are the minimum requirements to be eligible for the Emerging Leaders in Infrastructure Investment network:

  • Be 35 years old or younger, in line with the emerging leaders concept
  • Be part of an organisation with GIIA membership or an organisation with GIIA affiliation
  • Have experience within infrastructure investment or related activities, or provide professional services to the sector

Events will include networking receptions (when possible to do so), webinars, workshops and other informal meetings. These are aimed at providing individuals with a platform to meet others in the sector in informal settings while also offering opportunities for personal and professional development.

If you would like to be involved in the Emerging Leaders in Infrastructure Investment network, please register your interest with Admin@giia.net and join the LinkedIn group Emerging Leaders in Infrastructure Investment.

New GIIA member case studies launched

We have launched a new resource on our website, looking at GIIA member case studies from around the World that are delivering real societal benefits.

Compiled with support from KPMG, and using the framework of the UN Sustainable Development Goals, these case studies demonstrate the way in which infrastructure can be a positive force in local communities across the globe.

View case studies here

From renewables projects in India that are supporting local health clinics, to the world’s first electric ferry in Norway to an innovative system of fish ladders in New York, these are just a few of the examples of GIIA members helping to tackle sustainability challenges.

Speaking on the launch of the case studies resource, GIIA CEO Lawrence Slade said:

“Around the World, GIIA members are rising to the challenge of creating and delivering sustainable, innovative and environmentally friendly infrastructure that is needed for future generations.”

Richard Threlfall, Global Head of Impact and Global Head of Infrastructure at KPMG, commented:

“The success or failure of nearly three-quarters of the Sustainable Development Goals depend on infrastructure. Governments and global capital markets need to take quicker actions and work in greater collaboration in a way that is environmentally sustainable, socially impactful and resilient.”

GIIA will continue to add further case studies in coming weeks.  Members interested in submitting a new case study should email thoran@giia.net

GIIA members putting the ‘S’ into ESG

Director of Corporate Affairs, Jon Phillips, takes a look at the response by GIIA members around the world to the ongoing global health pandemic.

As many will testify, ESG is not a new concept for investors in infrastructure. Pre-covid, not a day would go by without an invitation to attend a conference with an ESG session or the opportunity to read another ESG report.

One of the regular discussion points within GIIA’s ESG working group has been around the observation that the ‘S’ often seems the poor relation of the ESG triumvirate. Investors have adapted well to the challenge of managing and reporting on Environmental performance and Governance requirements, but many have struggled to demonstrate the same progress on their Social impacts. This is problematic, as it is the Social impacts of infrastructure that are most likely to help investors and their operating companies to earn their licence to operate.

However, as the world responds to the ongoing health and economic emergency of Covid-19, GIIA members around the world have been stepping up to the challenge by providing much needed support to their employees, communities, customers and supply chains. We have seen many great examples of positive social impact through the provision of much needed medical equipment, use of facilities for medical testing operations and production of critical supplies, upwards of $200 million in financial donations to good causes, care for employees and flexible payment terms for customers.

Could it also be the case that Covid has forced a deeper understanding of the stakeholder eco-system in which investors operate, and if so, could this become a game changer for the future in terms of focus on the ‘S’ in ESG?

GIIA is in active dialogue with policy makers in all our key markets in order to champion the role of private investment in infrastructure as a fundamental element of economic recovery plans. A vital part of that engagement is to be able to demonstrate the highest principles of responsible asset stewardship and corporate social responsibility. Through their response to Covid, private infrastructure investors are demonstrating their value to society beyond the provision of quality infrastructure and are helping to make the case for an increased role in the future.

GIIA has identified the following 20 examples from around the world to illustrate the range and extent of the support our members are providing to help mitigate the impacts of Covid-19:

APG – To combat the pandemic and its socio-economic impact, APG on behalf of its pension fund clients has now invested €554 million in Covid-19 response bonds. The proceeds of ‘corona bonds’ are earmarked for financing of a range of emergency measures, including expansion of healthcare services, support to SMEs, and a temporary increase in social security expenditures. In some cases, corona bonds also provide for financial help to local governments and medical equipment to healthcare companies facing unprecedented demand due to the pandemic. Oscar Jansen, Credit specialist at APG Asset Management said: “the societal and economic impact of the pandemic is huge and a lot of money is needed to fight the crisis. As a responsible investor, we want to play an active role in this.”

Aquila Capital – In May 2020, Aquila Capital joined the European Alliance for Green Recovery, launched following the pandemic. As a signatory of the pan-European initiative, Aquila Capital is committed to implementing investment strategies that are consistent with the European Green Deal’s climate commitments to rebuild the economy after the crisis, while continuing the transition to carbon neutrality.

Aviva Investors – Aviva is donating £5m to NHS Charities Together, to support the welfare and wellbeing for NHS employees, volunteers and patients, assist patients leaving hospital and help fund long-term mental health support for NHS workers. The firm is also donating £10m to the British Red Cross, as well as supplying surplus stock of hand sanitisers, rubber gloves, antiseptic wipe pod refills and face masks to key worker organisations and charities.

British Columbia Investment Management Corporation – BCI contributed C$75,000 to the Rapid Relief Fund created by the Victoria foundation, which aims to support residents in Greater Victoria throughout the Covid-19 crisis. BCI staff also made individual donations, while the executive management team contributed an additional C$50,000.

Blackstone – Blackstone is contributing US $15m to relief efforts in New York. $10 million will go to the New York State COVID-19 First Responders Fund, which will deploy emergency aid and resources where they are needed most. The fund will also support food, transportation and housing assistance for healthcare workers on the frontline.

Brookfield – Brookfield Asset Management is launching a $5bn rescue fund for retailers that require urgent short-term liquidity during the pandemic. The $5bn fund will be drawn from Brookfield’s existing investment vehicles and its own balance sheet.

CDPQ – CDPQ is donating CA$300,000 among 5 selected charities while also deploying its financial and operational expertise to help companies in developing and structuring innovative financial solutions.

Corsair – Yorkshire Water has made a commitment not to use the Government’s furlough scheme for any of its employees and will retain all staff during the Covid-19 pandemic. Yorkshire Water is also continuing to offer support to customers who are facing financial difficulties as a result of the crisis, including special tariffs and payment holidays.

DWS Group – DWS Group have donated EUR 1 million to various charities and foodbanks across Italy, Spain, the UK, Germany and the US. They have also set up part of their website for other donations as part of a collective effort to fight Covid-19. Hamish Mackenzie, Head of Infrastructure at DWS said “A huge effort was made by the DWS team to support management as they worked to ensure the continuity of operations whilst protecting the safety of employees. Clear and regular communication, early engagement with employees and other stakeholders and the ability to draw on the experiences of the Global Financial Crisis were all essential tools to navigate the crisis.”

Goldman Sachs – Goldman Sachs has pledged US $25 million as part of the Goldman Sachs Covid-19 Relief Fund to support communities in most urgent need globally, with the firm contributing to match employee donations up to an additional $5 million. $1 million of this is being deployed to Barts Charity, which funds Barts Health NHS Trust, the organisation behind the new NHS Nightingale Hospital at the ExCeL convention centre in East London.

IFC Asset Management – IFC is increasing the amount of financing for companies to help fight the outbreak, approving an additional $2 billion in fast-track financing, bringing the total to $8 billion in support to help sustain economies and protect jobs.

IFM Investors – IFM is demonstrating its appreciation of healthcare workers on the front-line of the pandemic and supporting local restaurants in the process. It is buying food from restaurants, such as Outback Steakhouse, which is delivered to frontline healthcare workers.

John Laing – The John Laing Charitable Trust (JLCT) is a signatory to the Covid-19 Funders Programme, which enables John Laing Group plc and its subsidiaries to make charitable donations and provide welfare support to existing and former employees.

KKR – KKR & Co. has created a $50 million fund dedicated to supporting frontline workers and mitigating the financial hardship created by the pandemic. The fund will be used to help first responders and health workers, and in various financial relief efforts aimed workers and small businesses in the communities where it invests.

Macquarie Group – Macquarie Group is allocating $A20 million in charitable donations to the Macquarie Group Foundation to support a select number of non-profit organisations working to combat Covid-19 and provide relief to affected communities. The first organisation to receive $A2 million of the allocated funds will be The Global Foodbanking Network, which is providing vital hunger relief to vulnerable populations in places of active Covid-19 outbreaks around the world.

Marguerite – Fraport Greece and Copelouzos Group are actively participating in the Covid-19 support effort by donating 500,000 surgical facemasks in support of the health system with needed medical supplies.

Morgan Stanley – Morgan Stanley has so far announced $25 million in new funds designed to support coronavirus relief efforts. $15 million will be allocated to support charitable organisations that are providing food, disease control and caring services and the remaining $10 million will be allocated to frontline medical responders and community workers. The first three grants of $2 million each were announced for Feeding America, the CDC Foundation, and the World Health Organization’s Covid-19 Solidarity Health Fund.

PGGM – PGGM has invested more than €20 million in the Nordic Investment Bank’s €1 billion Response Bond with proceeds of the bond helping to finance projects that help alleviate the social and economic effects of the pandemic in NIB’s eight member countries: Denmark, Estonia, Finland, Iceland, Latvia, Lithuania, Norway and Sweden.

Swiss Life Asset Managers – Nortegas, a natural gas distribution company in Spain which Swiss Life has a stake in, have donated the equivalent of 52 tonnes of food to regional food banks in Spain while also extending payment terms to customers and small businesses. Chris Manser, Head of Infrastructure Equity at Swiss Life Asset Managers said: “we are fully aware of the obligation that we particularly have as an infrastructure investor to incorporate and promote sustainability and ESG practices, both within our platform and at the companies we hold in our portfolio. The pandemic has, once again, demonstrated the need for this push towards a responsible business environment and we will continue to support the effort now, and in the future”.

UBS – UBS is contributing $30 million to aid and local projects within communities around the world. UBS’s corporate commitments will match employee and client donations to the UBS Optimus Foundation COVID-19 Response Fund, and regional community appeals.  In addition, they have given employees the opportunity to donate or volunteer with select Community Affairs partners in their local communities.