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The return of the banks to project finance: S&P looks at the implications in Dutch pension fund magazine

In the June issue of Dutch pension fund APG’s Pensions.doc magazine, Michael Wilkins, Managing Director of Infrastructure Finance at Standard & Poor’s Ratings Services, says that over the past 20 years he has seen the project finance sector grow from strength to strength, fast becoming a highly attractive asset class to institutional investors, particularly pension funds. The concern now, he explains, is that as banks return to the sector after a hiatus post-crisis, the flurry of private funding could be short-lived.

The key question is whether recent industry initiatives in Europe, such as the ‘Juncker Plan’ – designed to encourage the ‘crowding-in’ of private infrastructure investment – or the ‘Europe 2020 Project Bond Initiative’ – which sees the European Investment Bank  provide a subordinated debt portion to selected projects – will provide enough incentive to keep investors interested?

To read the full article, please click here and turn to p20.

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