KO 대한민국

Infrastructure Debt: Steady Activity, Lingering Macro Doubts

2019년10월 - 4 분 읽기

Despite the expected seasonal summer slowdown, infrastructure debt financing deals remained steady overall in the third quarter of 2019—with strong activity in the U.S. and Canada, and slightly slowing activity in Europe, with a cautious eye toward Brexit.


Infrastructure debt financing activity held steady in the third quarter despite the expected summer slowdown. In the U.S. and Canada, much of the financing activity was in energy infrastructure—particularly the midstream, renewables and conventional power sectors. In Europe, Brexit-induced volatility led to a preference for high-quality, utility-type assets. Australia also remained active with refinancings of core assets and an uptick in greenfield public-private partnership (P3) opportunities.

Americas: Energy Infrastructure Driving Activity

Midstream—Pipelines and Liquid Natural Gas (LNG): Shale gas production and energy exports—particularly the export of LNG—continue to drive the majority of infrastructure spending in the U.S. As significant investment is required to deliver hydrocarbons from their drilling locations to refineries and end markets, pipelines and LNG export facilities have presented attractive financing opportunities.  

Power: Conventional power deals—typically a mainstay of bank project financings—became a larger part of the institutional debt market in the third quarter. Driving this was the combination of increased new build activity for combined-cycle gas turbine plants, as well as increased willingness by institutions to underwrite construction risk. Cash flows associated with merchant energy sales were part of a number of third-quarter power deals, a deviation from institutional lenders’ historic focus on solely contracted cash flows.

Renewables: Contracted renewable wind and solar projects continued to drive deal flow in the third quarter, but both institutional bond and bank pricing became increasingly competitive. In California, regulatory risk for renewable projects seemed to recede with PG&E’s announced, but not yet approved, reorganization plan. Assuming all existing Power Purchase Agreements are executed, this plan could also reduce associated exposure concerns for lenders, including banks and some institutions.

Europe: Preference for High-Quality, Defensive Assets 

Core Assets: In Europe, continued uncertainty around Brexit caused financing activity to slow and dampened new investment in greenfield U.K. projects. However, core, utility-like, defensive assets—such as water, sewage and distribution systems—remained a source of financing opportunities. Additionally, rolling stock—a key transportation asset in the train-reliant regions of continental Europe and the U.K.—provided deal flow.

Fiber: The internet and digital economy—supported by the European Union’s pledge to deliver urban and rural connectivity to all European households—is driving the acceptance of assets such as data centers and fiber networks as infrastructure. Government support in these jurisdictions often includes some combination of monopoly service areas, state-owned aggregators and developers, and state-owned offtakers.

Other Themes

Holding Company Financings: Sales of partial ownerships in high-quality infrastructure assets provided a source of value-add financings during the third quarter, given the more limited number of lenders available to finance these positions. The underlying assets of these deals typically consist of steady, cash flowing critical infrastructure—such as hub airports, regional utilities or key regional pipelines.

GDP-Linked Assets: Projects with low investment grade credit profiles and exposure to macroeconomic factors—such as GDP growth and trade volumes—fell out of favor, and overall demand declined. Investor demand for increased pricing led to at least one existing deal being pulled during the quarter. 

Core Australia Development: In Australia, there was a renewed push for the development of core infrastructure assets. Bid submissions for a major road project in Victoria was completed, as was the refinancing of the Melbourne Airport.


Following a ramp-up in September, we expect to see a busy pipeline of financings through November. Lower interest rates and demand for steady cash flow yields will likely drive activity in the space.

  • Renewables, Power and Midstream: In the U.S., we expect to see continued opportunities in renewables, and particularly in solar, where lower project and solar panel costs are supporting continued development. In the power sector, there may be an increase in speculative merchant cash flows as institutional lenders become more willing to take on refinancing risk. In midstream, at a time when speculative gathering systems are being built and financed in various basins, we believe established, contracted and cash-flowing pipelines look particularly attractive.
  • P3 Projects: Globally, fewer P3 projects are being developed given the increased political uncertainty in the U.K. and continental Europe—the core P3 markets. In the U.S., while no federal P3 bill has materialized, projects continue on a state-by-state basis. For instance, many state universities are privatizing energy systems to generate lump sum cash payments for their core educational missions. Social infrastructure assets—such as courthouses and civic centers—are also being developed on a one-off basis by counties and municipalities. We expect these projects to continue providing financing opportunities, although pricing may be tight.
  • GDP-Linked Assets: The refinancing of existing debt on GDP-linked assets, particularly in the U.K. and Europe, will likely provide opportunities in the fourth quarter. However, asset quality and pricing will require scrutiny, given the increased economic and political volatility in these markets. As Brexit continues to play out, defensive asset classes such as utilities and social housing may remain in higher-demand in the U.K.
  • M&A and Value-Add: Strong demand for steady, cash-flowing infrastructure and energy assets—particularly from strategic equity investors and institutional investors with long-term horizons—has kept prices high. While it’s difficult to predict M&A activity, we expect to see an increase in control transactions, as well as sales of partial interests, as sponsors and developers look to take profits, and other investors look to deploy capital. Renewable portfolio sales are likely to continue as well—a deep buyers’ market for these portfolios exists now, as non-infrastructure private equity funds continue to pursue steady cash flows, and international investors look to gain efficient scale and exposure to the U.S. renewable market.

In addition, as lenders continue to seek yield in the extended low-rate environment, we expect to see more non-traditional debt offerings—including minority holdco structured transactions, deals from Latin America, and power deals with merchant cash flows. That said, careful analysis is critical to ensuring returns are adequately compensating investors for the fundamental risks being assumed.

해당 자료에 제시된 전망은 작성 시 시장에 대한 베어링자산운용의 견해를 바탕으로 작성되었습니다. 작성된 이후, 다양한 요인에 따라 사전통지 없이 내용이 변경될 수 있습니다. 또한 본 자료에서 언급된 투자 결과, 포트폴리오 구성 및 사례는 단순 참고용이며, 결코 미래 투자 성과 혹은 미래 포트폴리오 구성을 보장하지 않습니다. 투자에는 위험이 수반됩니다. 투자와 투자에서 발생하는 향후 소득 가치는 하락 또는 상승할 수 있으며, 투자 수익은 보장되지 않습니다. 과거성과는 현재 또는 미래성과를 보장하지 않습니다. 

더 읽어보기

또한 본 자료에서 언급된 투자 결과, 포트폴리오 구성 및 사례는 단순 참고용이며, 결코 미래 투자 성과 혹은 미래 포트폴리오 구성을 보장하지 않습니다. 실제 투자의 구성, 규모 및 위험은 본 자료에서 제시된 사례와 현저히 다를 수 있으며, 투자의 향후 수익 혹은 손실 여부에 대해 보증 및 보장하지 않습니다. 환율 변동은 투자가치에 영향을 미칠 수 있습니다. 잠재 투자자들은 본 자료에 언급된 펀드의 자세한 내용과 구체적인 위험요인에 관하여 투자설명서를 반드시 읽어 보시기 바랍니다.
베어링은 전 세계 베어링 계열사의 자산운용 및 관련 사업의 상표명입니다. Barings LLC, Barings Securities LLC, Barings (U.K.) Limited, Barings Global Advisers Limited, Barings Australia Pty Ltd, Barings Japan Limited,Baring Asset Management Limited, Baring International Investment Limited, Baring Fund Managers Limited, Baring International Fund Managers (Ireland) Limited, Baring Asset Management (Asia) Limited, Baring SICE (Taiwan) Limited, Baring Asset Management Switzerland Sarl, Baring Asset Management Korea Limited 등은 Barings LLC의 금융서비스 계열사로(단독으로는 “계열사”) “베어링”으로 통칭합니다.
본 자료는 정보 제공의 목적으로 작성된 것이며, 특정 상품이나 서비스의 매매를 제안하거나 권유하기 위한 것이 아닙니다. 본 자료의 내용은 독자의 투자목적, 재무상태 또는 구체적인 니즈를 고려하지 않고 작성되었습니다. 따라서, 본 자료는 투자자문, 권유, 리서치 또는 특정 증권, 상품, 투자, 투자전략 등의 적합성 또는 적절성에 대한 권고가 아니며 그러한 행위로 인식되어서도 안됩니다. 본 자료는 투자 전망 또는 예측으로 해석되어서는 안됩니다.
달리 명시되지 않는 한, 본 자료에 제시된 견해는 베어링의 것입니다. 작성 당시 알려진 사실을 바탕으로 신의 성실하게 작성 되었으며 사전통지 없이 변경될 수 있습니다. 개별 포트폴리오 운용팀은 본 자료에 제시된 것과 다른 견해를 가질 수 있으며 고객별로 다른 투자 결정을 내릴 수 있습니다. 본 자료의 일부 내용은 베어링이 신뢰할 만 하다고 판단하는 출처에서 획득한 정보를 근거로 작성되었습니다. 본 자료에 수록된 정보의 정확성을 확보하기 위해 최선의 노력을 기울였으나, 베어링은 정보의 정확성, 완전성 및 적절성을 명시적 또는 묵시적으로 보증하거나 보장하지 않습니다.
본 자료에 언급된 서비스, 증권, 투자 또는 상품은 잠재투자자에게 적합하지 않을 수 있으며 해당 관할권에서 제공되지 않을 수 있습니다. 본 자료의 저작권은 베어링에 있습니다. 본 자료에 제시된 정보는 개인용도로 사용될 수 있으나 베어링의 동의 없이 변형, 복제 또는 배포할 수 없습니다.



베어링자산운용은 당사 웹사이트 사용자들에게 최적화된 웹 경험을 제공하고자 쿠키를 사용합니다.
베어링 웹사이트를 이용함으로써, 당사의 쿠키정책법적 & 개인정보고지사항에 동의하는 것으로 간주합니다.