Q1 2016 is the first quarter for which IJGlobal is publishing infrastructure finance tables...

Global economic conditions have improved, and global infrastructure investment rose, in 2013. But at the same time PPP investment declined, particularly for new-build projects with high construction costs. As a result, the global PPP market is now in its third year of decline, and the number of project financings to close in the market continues to fall.

IJGlobal’s inaugural infrastructure market outlook report, with views and insights from the industry leaders across the globe

In 2013 the global infrastructure finance market recovered as both deal value and deal count went up. IJ records show that the total investments in global infrastructure reached US$280 billion, which was a 51 per cent increase from the preceding year. A total of 548 deals reached financial close, up by 30 per cent.

When it comes to infrastructure, the US is a curious beast. Whilst the shale explosion continues to offer opportunities both nationally and internationally, US transport and other infrastructure sectors seem rooted to the spot.

ECAs and DFIs have long been a staple of the infrastructure finance, supporting and supplementing commercial lending where appropriate. However, in a slow post crisis economic climate these institutions have become ever more prominent in global energy and infrastructure projects.

Among the multitude of infrastructure market stakeholders, sponsors/equity investors play a particularly significant role. Equity backing for projects has always been a vital component in developing infrastructure assets, where traditionally industrial construction style companies invest into equity and raise additional funds to cover project costs in the form of project finance debt.

Globally, airports and the aviation industry is on the slow path to recovery. Infrastructure investments in airports and the volume of M&A activity in the sector have suffered under the global economic downturn.