Paul Tilt was recently quoted in Financial News providing analysis on the 2014 League Tables, commenting “There is an upward trend in prices, especially for the trophy assets, with the improving financial situation in general”
»» In full year 2014 InfraDeals tracked 988 deals, utilising over USD 177bn in project finance (PF), to financial closure. The loan market was used to finance 82% of PF transactions and the bond markets 18%.
»» Australia and the USA closed over 33% of all PF loan transactions globally worth nearly USD 50bn. A number of huge transactions account for this dominance including the two Freeport LNG transactions in the USA and transportation projects, such as Queensland motorways, in Australia.
»» EMEA accounted for 42% of closed PF loans, Asia 23%, North America 21.5% and Latin America 13.5%
»» 2014 saw infrastructure investors facing rising prices for brownfield infrastructure assets, largely because of an excess flow of capital into the space and a drop in deal volumes. In Australia, some assets fetched multiples of 27xEBITDA, in Europe First State and Borealis paid a 17xEBITDA for Fortum Finland and in the UK OTPP’s 50% stake acquisition in Bristol Airport had a multiple of 19x.
»» Several funds reported the completion of successful fundraises in 2014. Antin Infrastructure Partners reached its EUR 2bn hard cap for its second ten-year fund, while First Reserve surpassed its USD 2bn target reaching its USD 2.5bn hard cap for its second fund.
»» Morgan Stanley Infrastructure Partners (MSIP) reached a USD 1.5bn first close on its USD 4bn fund and will continue to fundraise during 2015. Morgan Stanley Infrastructure Partners (MSIP) reached a USD 1.5bn first close on its USD4bn fund and will continue to fundraise during 2015.
»» Allen & Overy was top global legal advisor having closed 67 deals worth USD 42.72bn. Clifford Chance was second on 54 deals worth USD 36.79bn, while Ashurst secured third place with 40 deals worth USD 34.75bn.
»» Macquarie Capital was top financial advisor in 2014, helping to close over USD 27bn of deals. BNP Paribas and PwC secured top three rankings, both helping to close USD 20bn of transactions in the period.
»» MUFG was top loan provider in 2014, followed by SMBC. The two lenders had nearly 10% of the global loan market share. Credit Agricole, RBC and Goldman Sachs secured the top three positions in the global bonds table.