Summer drought

Deal flow decreased from $58bn of global deals closed in the second quarter of the year to just around $34bn in the third quarter. Bruno Alves scans the latest data

Energy has reclaimed top spot in InfrastructureInvestor Assets’ sector-focused league table for the third quarter of the year. But the summer holiday period significantly cut into the amount of deals closed between July 1 and September 30.

Fund manager Citadel Capital’s $3.7 billion development of a second-stage oil refinery in the Greater Cairo district of Mostorod, in Egypt, was the biggest deal to close in the third quarter, helping to propel energy to the top of the league table and accounting for almost half of the $8 billion in energy deals closed during the period.

However, the most salient feature to emerge from the third quarter data concerns the sharp decrease in deal flow recorded during this period. From July 1 to September 30, InfrastructureInvestor Assets recorded $33.6 billion of deals closed compared to the $58 billion of deals concluded during the previous quarter, a decrease at least partly attributable to the summer holiday period.

For example, the amount of transport deals closed during the third quarter clocked in at $7.9 billion, $10 billion less than the $18.4 billion of transport deals closed during the second quarter. Still, transport
was the second-most-active sector during the third quarter of the year, with deals including the $1.6 billion Denver Transit Rail public-private partnership (PPP) in the US, and Barcelona’s $1.2 billion L9 Metro line project helping to keep the sector at the top of the table.

British bank HSBC led the way in arranging deals during the third quarter of the year, moving up three spots from its position as the fourth-biggest arranger in the second quarter. Spanish savings bank La Caixa was a new entrant at number two while French banks Credit Agricole (formerly Calyon), Societe
Generale and Spanish banks BBVA and Santander continued to figure prominently near the top.

In regional terms, Western Europe continued to be the most active region with just over 29 percent of all deals closed – a marked decrease from the second quarter, when it accounted for almost 60
percent of all completed deals. This was in part due to a sharp increase in the number of deals closed in the Middle East/Africa, which accounted for 25.6 percent of all deals closed. North America
came in third with 24.7 percent of completed deals.