Dean Kennedy, a product manager for trust & agency Services, Europe, Middle-East and Africa at Deutsche Bank:
“Moving into 2015, we see traction in Irish and Italian PPPs, primarily for transport assets, and a potential re-emergence of the market in Portugal. We also expect to see more UK Offshore Transmission Owner (OFTO) transactions, financed in both the bank and capital markets spaces.
The withholding tax exemption announcement in the UK along with the EC’s launch of the “Investment Plan for Europe,” and establishment of a sub-debt fund worth circa €315 billion (EFSI), could lead to a potential opening of a harmonised European private placement (PP) market, with a boost to projects to be invested into by institutional investors with less reliance on bank funding. With this in mind, Deutsche Bank Trust & Agency Services is ready to assist the market in supporting such transactions.
The EIB continues to support transactions with its credit enhancement product and direct lending, closing five PBCE project bonds to date with five more approved in the pipeline. Those projects are mostly transport related from an asset class perspective, but we did see the first project bond issued in the telecoms sector this year. Looking at the proposed pipeline of “trustworthy projects,” expect transport, social and energy projects across member states to be the focus for the EC and EIB.
DB/TAS is proud to be playing a part in three out of the five PBCE project bonds issued to date and is well placed to continue to support future transactions alongside the EIB.”
Amit Wagle, a Hong Kong-based vice president at Deutsche Bank:
“The Asia Infrastructure Investment Bank (AIIB) was established in 2014, with the goal of providing capital for infrastructure development projects across Asia. The registered capital for the bank started with $50 billion, with calls to increase that to $100 billion. Currently 21 APAC countries have signed up as member countries to the bank.
In China there are plans for massive development of transportation assets – primarily railways and airports. Similarly in India there are plans for highway projects and power generation projects. APAC governments still have to rely upon the private sector to fund projects through PPPs, which are not easy to procure due to lack of expertise of the local governments, thereby making it less attractive for investors.”