Natixis, a key player in project and infrastructure finance, is developing a new model for the financing of infrastructures
Infrastructures today can no longer be financed by banks alone. Changes in regulations have triggered the need for a new financing model. Natixis, with its extensive expertise in infrastructure finance, is paving the way for new solutions by matching the financing needs of project sponsors with the interests of institutional investors.
An alternative to bank debt
Until recently, most infrastructure projects were financed by banks.
The economic crisis, changes in regulations and the reduction of the number of players on the market have changed the rules.
Due to the strong increase in the need for new infrastructures worldwide – estimated in Europe at €1,500 to 2,000 billion between 2012 and 2020 – it became necessary to develop financing by institutional investors.
At the same time, because of the sovereign debt crisis, institutional investors (insurance companies, pension funds, etc.) were looking at diversifying their assets. “Infrastructures” seemed to be a good alternative due to the low correlation with economic cycles and the fact that they are long-term investments, which is what they are looking for.
An Infrastructure platform combining financial advisory, arrangement and services
Natixis has created an Infrastructure platform to provide clients with financial solutions in line with their projects and has entered into partnerships with front-rank investors.
In December 2012, Natixis entered into a Europe-wide partnership with Ageas, one of Europe’s 20 leading insurance companies, to co-invest €2 billion over three years in loans originated, structured and managed by Natixis.
This year, CNP Assurances and Natixis have also signed a memorandum of understanding to invest jointly in infrastructure loans. CNP Assurances targets an infrastructure finance portfolio of €2 billion in three years.
Partnership with EDHEC - Risk Institute: Research chair
In 2012, Natixis and EDHEC - Risk Institute created a Research chair called “Investment and governance characteristics of infrastructure debt instruments”
The purpose of the chair is to help clarify the nature and investment profile of infrastructure debt instruments to reduce the relative shortfall of available data on this subject compared to long-established investment segments.
To view the results of EDHEC Risk Institute on the investment characteristics of infrastructure debt: http://cib.natixis.com/infrastructure/Research.aspx
European Infrastructure Day: a must
For the second consecutive year, Natixis held its “European Infrastructure Day” on October 17 in Paris. The conference attracted more than 200 infrastructure players (institutional investors, project developers, regulators and public sector representatives) around experts who presented the most recent changes in this asset class, its specifics and prospects.
This year, the experts talked about ongoing changes in regulatory treatment concerning investors, investor strategy in such a context, the rapid changes occurring in infrastructure finance and the first operations financed by investors over the last twelve months.
These initiatives confirm the commitment of Natixis to designing solutions to better serve its clients, who are economic agents, and demonstrate its capacity for innovation in a deeply changing market and regulatory environment.
For more information, http://cib.natixis.com/infrastructure