GIIA Infrastructure Pulse Survey – Q3

GIIA, in partnership with Alvarez & Marsal, has today released the Q3 GIIA Infrastructure Pulse Survey for both the European and Americas markets. This quarterly survey aims to provide a regular temperature check of sentiment in the sector and to monitor emerging trends.

In Europe, the Q3 Pulse Survey shows an improvement in investor sentiment among those firms currently fundraising when compared to Q2, with the Nordics continuing to be the region viewed most positively by investors. In terms of sector outlook, respondents were increasingly bullish about transactions in communications infrastructure (reflecting increased appetite for, and number of, opportunities in fibre, telco towers and datacentres) as connectivity remains critical as people work from home. Sentiment also remained strong in the renewable generation, biomass and EfW sectors. In Europe, the importance of ESG continues to increase in terms of its significance to investment decisions.

Meanwhile, the Americas Pulse Survey also showed an improvement in investor sentiment among those firms currently fundraising and, like Europe, the sector viewed most positively was communications technology. However, most respondents expressed a more positive view in Q3, as compared to Q2, of the anticipated timeline for portfolio yields to return to pre-COVID-19 levels.

Click here to view the Q3 GIIA Pulse Survey – Europe

Click here to view the Q3 GIIA Pulse Survey – Americas

GIIA is grateful to Alvarez & Marsal for their partnership on this project.

Webinar | The role of hydrogen in achieving net zero

GIIA, in partnership with Arup, hosted a webinar to discuss the potential role of hydrogen in helping economies achieve the objective of net zero emissions by 2050.

Our expert panel, comprised of Filippo Gaddo, Director Energy Economics and Regulation, Arup, Marissa Szczepaniak, Investment Director, Vantage Infrastructure and Chris Train, Gas Goes Green, examined the following topics:

  • What are the differences between blue and green hydrogen and the economics of production?
  • Issues around the utilisation of technologies such as CCS in hydrogen production
  • Examining the technicalities and feasibilities of converting Europe’s gas grid, the risk of stranded assets and the scale of investment required
  • The role of the EU Hydrogen Strategy 2020 and what needs to happen with policy and regulation to attract private infrastructure investment?
  • What will Europe’s energy infrastructure look like in 2050 and how should utilities and private infrastructure investors plan their investment strategies over the coming decades?

View the webinar video here 

View the slide presentation here

Sustainable Infrastructure Investment: Webinar

GIIA was delighted to recently host a webinar with Richard Threlfall, Global Head of Infrastructure and Global Head of Impact at KPMG looking at Sustainable Infrastructure Investment and the critical role that private and public infrastructure investment has to build a better future, the relationship between infrastructure and the UN’s sustainable
development goals, emerging infrastructure trends and the skills and talent gap in infrastructure.

Click here to read a summary of this event

For more information on GIIA’s ESG and Sustainability Working Group please contact Jon Phillips 

Roundtable with Financial Secretary to the Treasury

As part of GIIA’s engagement with the UK Government, we recently hosted a virtual round table meeting with Financial Secretary to the Treasury Rt Hon Jesse Norman MP and a number of our investor members to discuss the need to resolve the mechanisms through which government can access private investment to enable the delivery of infrastructure in the UK.
The roundtable touched on three key areas of discussion; existing funding models, the scope for new vehicles, and blockers to investment. GIIA members expressed the importance of ensuring that the UK remains an attractive investment destination and the important role that private investors can play in supporting the delivery of key strategic government policies such as the UK’s commitment to Net Zero by 2050 as well as the levelling up agenda.
Both sides have committed to a continued dialogue with a follow up meeting to be scheduled later in the Autumn.
To learn more about GIIA’s UK Policy work, please contact John Kavanagh

GIIA welcomes CMA provisional findings

Helpful steps taken by the Competition and Markets Authority in their provisional findings on the review of water price controls

Lawrence Slade, Chief Executive, GIIA said:

“It is important that regulation ensures that consumers across the country pay a fair price for their utilities, whilst at the same time making sure that the UK is able to attract the level of investment required to address resilience to climate change impacts and meet the UK’s legally binding commitment to achieve Net Zero carbon emissions by 2050. These issues will require extensive investment in the UK’s infrastructure over the coming decades and the associated costs must be fairly allocated to provide inter-generational equity between current and future consumers.

The CMA’s provisional findings indicate that some adjustments are needed to Ofwat’s price determinations in order to achieve the right balance, and we agree. GIIA will be submitting further evidence in response to the CMA’s provisional findings and we will continue to encourage the Government, Regulators and Investors to create the necessary environment to meet the UK’s future water and energy needs at the same time as achieving a fair deal for all consumers.”

Webinar: Private infrastructure investment & post-pandemic recovery

On Tuesday, September 15th, GIIA hosted a webinar as part of the United for Infrastructure week of events to discuss how private investment in infrastructure can support both the post-pandemic economic recovery and longer term infrastructure challenges in the United States.

We were joined by an expert panel, including:

* DJ Gribbin, Former Special Assistant to President Trump on infrastructure policy and currently Senior Operating Partner at Stonepeak
* Michele Nellenbach, Director, Bi-Partisan Policy Centre
* David Agnew, Managing Director, Macquarie Infrastructure & Real Assets
* Tom Osborne, Executive Director, IFM
* Olivier Renault, Managing Director North America, CDPQ

Please click the link below to watch the webinar. 

 

GIIA welcomes new CBI report ‘Investing in Infrastructure’.

GIIA was pleased to contribute to the CBI’s new report titled ‘Investing in Infrastructure – Sourcing the Finance to Build Back Better’.

We welcome the acknowledgement of the vital role that private investment plays in delivering the modern, efficient and socially responsible infrastructure needed for future generations and the 13 recommendations the report makes.

In particular GIIA welcomes those recommendations calling on the Government to provide more clarity around the role they see for private investment in delivering many of the nation’s major infrastructure projects.

Speaking on the release of the report, GIIA CEO Lawrence Slade said:

“At a time when Government spending is rightly focused on both the social and economic recovery from the coronavirus pandemic, the private sector has the expertise and innovative ideas, and  stands ready to help address the UK’s long term infrastructure challenges while playing a significant role in the UK’s economic recovery.”

The full CBI report can be viewed here

NEW REPORT | Global Risks for Infrastructure – The Climate Challenge

GIIA, in partnership with Marsh & McLennan, is pleased to release the second in a three part analysis of global risks for infrastructure investors. Looking at the Climate Challenge, this report discusses the specific risks to infrastructure investors under each of the key risk categories outlined by the Task Force on Climate-related Financial Disclosures, as well as crucial levers for achieving climate resilience at both the portfolio and asset level for the infrastructure sector.

Click the image below to read Global Risks for Infrastructure – The Climate Challenge

Physical risks related to climate change are becoming a crucial risk category for infrastructure owners and operators. Natural disasters are already a leading cause of infrastructure disruptions in high-income nations, and climate change is expected to exacerbate these disruptions. In addition, increased urbanisation is heightening concentration of infrastructure assets in high risk areas.

Applying the three mutually reinforcing levers discussed in this report can provide infrastructure investors with a launchpad for developing a dynamic and future-ready climate resilience strategy.

 

The first instalment of this series illustrated the risk landscape for infrastructure with the release of the 2020 Global Risks for Infrastructure Map while the upcoming final instalment will explore the impact of transformative and disruptive technological innovations on the infrastructure sector, with an expected release in Q4 2020.

UK MP’s attitudes to infrastructure investment

A new Ipsos MORI survey into MP’s attitudes towards UK infrastructure reinforces the need for increased investment and the important role of the private sector in its delivery, echoing much of the sentiment expressed in the 2019 GIIA/Ipsos MORI Global Infrastructure Index.

All UK MPs interviewed agreed that investing in infrastructure is vital to Britain’s future economic growth, a view shared by 80% of the public. There is also a strong belief that Britain is not doing enough to meet its infrastructure needs, highlighting an overall feeling of dissatisfaction with Britain’s current infrastructure: 22% of MPs rate it positively compared to 36% of the public.

On the question of private investment providing the infrastructure Britain needs, both MPs and the public showed high levels of support with more than 90% of MPs saying they were comfortable with private investment, while the general public responded favourably by a 4 to 1 margin compared to those who were opposed to it.

Views diverge on the sectors that should be prioritised for investment. The Global Infrastructure Index shows that 40% of the public think solar energy infrastructure is an investment priority, followed by flood defences and rail, whereas MPs prioritise digital infrastructure relatively more highly than the public (57% compared to 25%), perhaps indicative of the need for elected representatives to better understand the priorities of their constituents which seem to be more heavily focussed on green, sustainable investments.

At GIIA, we continue to maintain a strategic dialogue with Government on behalf of our members on the role of private investment in infrastructure, including through the UK Investable Infrastructure Senior Leadership Group as well as through key channels across DIT, BEIS and HM Treasury where we are actively informing long term policy development and advocating for the role of private investment to deliver the infrastructure that communities rely on today, and that future generations will need tomorrow.

Results of the 2020 Global Infrastructure Index, produced in partnership between GIIA and Ipsos MORI, will be published in the Autumn.

ELII – Adebayo Ogunlesi talk

GIIA’s Emerging Leaders in Infrastructure Investment network were pleased to hold their inaugural meeting last week, welcoming Founder and Managing Partner of Global Infrastructure Partners Mr Adebayo Ogunlesi to speak about his own career and take questions from members.

Attendees were able to hear first-hand about the career path that Bayo took, after initially practising as a lawyer before moving to Credit Suisse First Boston, rising to Head of Investment Banking and finally founding GIP in 2006.

During the webinar, ELII members asked a number of questions about the infrastructure asset class, managing risk, the challenges of fundraising for a first time fund and the impact of Covid-19 on the sector.

GIIA’s ELII network is a member-led organisation aimed at young professionals who are working within the infrastructure investment sector.

For more information about ELII please join the LinkedIn group or contact Joe Robinson at jrobinson@giia.net