The European Commission is proposing to use €230m to fund a test phase for its Europe 2020 Project Bond initiative, to be implemented in 2012-2013. The pilot programme, part of a wider €50bn infrastructure facility, will target up to 10 projects and ‘is expected to mobilise investments of up to €4.6bn’.
The deal sees Siemens Project Ventures reduce its stake in the Indian airport from 40% to 26%, while GVK Power & Infrastructure takes over as the largest shareholder by increasing its interest from 29% to 43%.
Being seeded and providing predictable yield from day one may prove to be the keys to success for new infrastructure funds.
The UK PPP/PFI investor has bought a portfolio of six National Health Service LIFT assets. The NHS LIFT programme was launched under the UK’s previous Labour administration to try and deliver improvements in health provision.
The EIB is considering investing €25m in the new vehicle. Sequoia has established a partnership with three banks that will provide assets into the fund, which is aiming to reach a first close during this quarter of between €100m and €200m.
A consortium led by VTB Capital and Gazprombank is working to reach financial close on a contract to construct and operate the central section of the St. Petersburg Western High-Speed Diameter toll road. The EBRD will make a final decision on the loan in December.
The African Infrastructure Fund 2, advised by Macquarie and Old Mutual Investment Group, has reached final close. About 24% of the fund has already been committed in the transport sector.
Bidders interested in Madrid’s and Barcelona’s airports now have three more months to present their offers. By the time they lodge them, though, Spain will probably have elected a new conservative government opposed to the airport privatisations in their current form.
The Swedish power group is gauging market interest for the sale of its Finnish electricity network and its heat distribution business. EQT, Macquarie and a consortium of Goldman Sachs, 3i Infrastructure and Finland’s Illmarinen Mutual Pension Insurance Company are said to be interested in the sale.
The ‘Connecting Europe Facility’ will be unveiled next week and will focus exclusively on trans-European transport, energy and ICT projects. Between 15% and 20% of the proposed €50bn in spending will be leveraged through financial instruments and public-private partnerships.
With fears mounting over the weakening global economy, investors kept their wallets closed in Q3 2011. Just $2.8bn was raised in the quarter, meaning that the global fundraising total this year is likely to be less than in 2010.
Transfield/Veolia Transdev, Serco Australia and Transit Systems/Forgacs Engineering will receive tender documents allowing them to submit bids by early 2012. Five parties had originally shown interest in running Sydney Ferries.
The managing director and chief executive of JPMorgan Asset Management’s Infrastructure Investments Group says he believes infrastructure is the ‘Holy Grail’ for institutional investors and could represent as large a slice of investor portfolios as real estate within 10 to 15 years.
The subordinated debt fund is channelling up to £15m in loans to a portfolio of 1,500 domestic solar panel installations in England. The £65m PFI fund – fully invested – is considering raising new equity and putting in place debt facilities to capitalise on an ‘accelerated pipeline of opportunities’.
A subsidiary of the Connecticut-based investor has purchased Cambridge Water, which serves 310,000 people in the UK and has close to £62m of assets. The acquisition includes Cambridge Water’s regulated and non-regulated activities.