Infrastructure Debt: Unlocking Investment Opportunities in a ...

1 day ago · Infrastructure Debt: Unlocking Investment Opportunities in a Transforming Economy. By ... These new facilities demand significant capital and sophisticated management skills and can produce attractive investment opportunities because debt can be issued to complement ...

CouponFollow Extension

$9
OFF

Infrastructure Investing Will Never Be The Same | McKinsey

18 hours from now

Aug 1, 2022 · The energy transition is a prime example of a large-scale opportunity that could potentially be a recipient of these funds. The global economy needs an estimated $9.2 trillion …

mckinsey.com

FAQs about Infrastructure Debt: Unlocking Investment Opportunities in a ... Coupon?

Should institutional investors invest in infrastructure debt?

With underlying assets that provide essential services, infrastructure debt can play a key role in institutional investor portfolios. The asset class offers the possibility of delivering attractive returns, matching long-term liabilities, and diversifying traditional business cycle-sensitive investment holdings. ...

Is Infrastructure debt a good investment?

Most infrastructure debt, including bonds, is issued as senior debt, offering a secure position in repayment, but yields (typically around 6%) may be unattractive to certain investors. To enhance credit profiles and reduce capital costs, sponsors sometimes issue higher-risk, junior or mezzanine debt at more elevated returns (10%+). Outlook ...

Is Infrastructure debt a private or a public debt?

Private debt also includes a larger universe of potential issuers. More broadly, the majority of infrastructure debt, including publicly traded bonds, takes the form of senior debt. This debt ranks ahead of the borrower’s other financial obligations and is typically investment grade. ...

What will Infrastructure debt investors look like in 2024?

Infrastructure debt investors will be able to find more opportunities with attractive risk-adjusted returns in 2024, taking advantage of the still elevated base rates and improving credit fundamentals. Alex Leung – Head of Infrastructure Research & Strategy Private infrastructure had a challenging 2023. ...

What are Infrastructure debt funds?

Infrastructure debt funds typically invest in debt linked directly to projects, rather than debt linked to a corporate entity. Known as project finance, this type of debt has become increasingly popular in recent decades, as it allows a sponsor to shift risk off its balance sheet. ...

How does Infrastructure debt management work?

Furthermore, strict reporting requirements and comprehensive due diligence are integral to managing infrastructure debt. Infrastructure debt lenders demand regular and detailed reports on financial performance, operational issues, and compliance with the terms of the debt agreement. ...