IJ Global PF Infrastructure Review FY 2012: Executive Summary


2012 was without doubt an extremely difficult year for project finance; the global infrastructure outlook significantly deteriorated as both global value and deal count dipped below 2009 lows, active project pipelines were depleted and high debt levels and poor economic recovery in Europe stifled the markets. This trend was evident across all regions, all recording a downturn in the volume of closed deals. This depression notwithstanding there was a notable shift in global activity away from Europe, with investments spread more evenly across the globe. Despite efforts to invest in core infrastructure in the Netherlands, France, Belgium and Germany, the Eurozone continues to be hindered by the on-going financial crisis, limiting opportunties for infrastructure investment. Eastern Europe faces much the same outlook with Turkey and Russia the only exceptions. LatAm was the only region that recorded an overall rise in deal value whilst Asia Pacific was most resilient to the global downturn, only recording a minor fall in total deal value. The news comes as a stark reminder that global recovery remains far from secure, the slight year on year uptick in bank lending, deal value and deal volume seen in 2011 and 2010 totally expunged in a pretty bleak twelve months for infrastructure.

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