July / August 2011 Issue

    Month: July
    Year: 2011

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    High yield bonds: a panacea for infrastructure?

    What are the possibilities and limitations of the bond market as far as infrastructure investors are concerned? Spence Clunie of Ancala Partners and Anthony Forshaw of Deutsche Bank explore the question with reference to Moto, a deal they both worked on

    How to avoid ‘penny squeezing’

    First Reserve, the energy-focused fund manager that recently closed its debut infrastructure fund, believes forming industrial partnerships is far preferable to competing in auction processes. Senior executives Mark Florian and John Barry discuss the firm’s strategy with Andy Thomson

    Investors, get ready to board

    How will the proposed high-speed rail network transform Britain, and what are the investment opportunities it brings with it? Lindsay Noble of Davis Langdon provides answers

    A man for a crisis

    The European Investment Bank is facing one of its most daunting challenges: creating a vibrant infrastructure bond market that will one day stand on its own two feet. The bank’s president, Philippe Maystadt, tells Bruno Alves why he’s itching to make this happen sooner rather than later

    How cheap is too cheap?

    Fiscally distressed US cities considering parking privatisations risk looking like they are taking trips to the ‘pawn shop,’ according to some. As a result the valuation of parking assets can become a controversial issue.

    The merits of a maligned methodology

    Valuing portfolio companies based on a discounted cash flow approach is controversial when applied to private equity. We discover why valuation experts still consider it the most appropriate method for infrastructure.

    Unfit for the long run

    Some institutional investors have voiced objections to mark-to-market accounting, saying it acts as a deterrent to those seeking to invest long term in infrastructure – whether directly or through listed vehicles.

    Investors pause as economies weaken

    Renewed doubts about recovery in the US and Europe are among the reasons cited for LPs’ hesitancy in committing to infrastructure.

    PFI industry rejects haircuts

    David Metter, head of Innisfree and UK trade body PPP Forum, told Parliament he would not accept cuts to contractually agreed PFI returns.

    Madrid and Barcelona ready for take off

    Spain will officially launch the privatisation of Madrid and Barcelona airports in July. Revenues will be derived from regulated tariffs and commercial activities.

    It's all about fees

    Make no mistake - ‘developer funds’, listed and unlisted, are competing against GPs on fees, while still providing LPs with asset management services.

    Seeking enlightenment

    Given the long-term and sensitive nature of many infrastructure assets, investors in the asset class must take ESG issues seriously. Indeed, there are those who liken the adoption of ESG to a spiritual journey.

    Controlling the states

    The long-running debate about the merits or otherwise of US PPPs is now focused on different priorities at federal and state level.

    It’s different in Alaska

    The planned construction of a bridge in Alaska is moving forward with the offer of availability payments. Hopes are high that the project will not suffer the same kind of legal challenge as an availability-based project in California.

    Wake up, regulators

    For pension funds to play a significant role in addressing the world’s future infrastructure investment needs, they must be granted more flexibility.

    ‘You uncaring shark’

    If infrastructure fund managers wish to have a defence against being described thus, they should act on past discussions about creating a representative association.

    The long and winding (rail) road

    French rail agency RFF and its private sector partners have managed to finance the €7.8bn Tours-Bordeaux high-speed rail concession after almost four years in procurement.

    Don’t scare the horses

    Why the UK’s proposed new high-speed rail line may not get the royal seal of approval.

    What’s in a name? About $100m a year

    A Staten Island official says bidders for the reconstructed Goethals Bridge linking New York and New Jersey should be offered (re-)naming rights.