Power & Infrastructure Finance
PPP/ Social Infrastructure
Public private partnerships and other government-backed initiatives.
What we do
Investec has been active in all sectors of the PPP and Social Infrastructure markets including
- Hospitals, Medical Centres and Specialist Centres
- Schools, and Universities
- Local and Central Government facilities and accommodation
- Custodial and Defence
We have advised on some of the largest and most complex projects to date around the world. Our expertise comes in our ability to assess, manage and structure the project risk on behalf of our clients in a way which underpins optimal funding terms.
‘Investec provides bespoke financial solutions for clients. Whether as a lender, investor, or adviser, we work to understand the underlying risks and dynamics and investigate the best way to add value rather than just following the standard path.’
Our PPP teams have acted as advisors, arrangers and lenders on PPP projects in the UK, Europe, South Africa, Australia, Canada and the US.
Services provided have included:
- Complex structuring and advising on bids and financial strategy (eg tariffs, pricing mechanisms)
- Arranging debt from bank and bond markets, multilateral funders (the EIB, DBSA for example), and equipment finance
- Underwriting and co-investing alongside clients in suitable structures
- Obtaining credit ratings
- Undertaking refinancing, secondary market disposals and valuations
- Structuring, advising on and executing interest rate, cross currency and inflation hedging.
More recently financial uncertainty and regulatory constraints have posed challenges to PPP models. We are responding to these challenges with innovative deal structures and exploration of alternative sources of funding.
The health sector is a particular area of expertise, and we have advised on, or participated in funding for, the largest hospital PPPs in the UK, Canada and Australia.
Australia PPP / Social Infrastructure Development role
In Australia, we sponsor and develop social and economic infrastructure, as well as arranging and providing debt finance for PPPs and other forms of partnership with government, local authorities, utility companies and universities.We apply an integrated approach to all aspects of the development and funding process and can manage all areas of accountability and risk on behalf of the client, including projects with qualified demand risk such as accommodation and car parks associated with public projects.
Our expertise in structuring complex transactions, together with our global capacity offers proven value to our partners and investors.
Key Deals include:
- Medical centre and health clinics
- Student accommodation
- Car parks (associated with essential infrastructure projects)
- Key worker accommodation
- Education accommodation
- Government offices and accommodation
Telecom infrastructure is under constant pressure to evolve. Enterprise and consumer users want ever-increasing bandwidth and better connectivity. Operators are looking for new revenue streams and more ways to monetise services.
Network providers face significant upfront costs. They generate returns through increased traffic. Our comprehensive knowledge of the communications ecosystem allows us to quantify and manage these risks effectively. We invest in transport and routing infrastructure, IP services, [software], fixed-line and mobile networks.
We fund network roll-outs and technology investments arising out of mobile licences and broadband developments. We provide project acquisition and development finance, and finance asset-backed and contract-backed expenditure.
Recent areas of involvement include:
- Broadband backbone and enterprise customer infrastructure
- Operator infrastructure and equipment finance
- Sub-sea optical cables
- Mobile technology and networks