Governments, Private Equities, Banks and Contractors have been investing in infrastructure in many of its forms and its importance to the efficiency and growth of economies. For several decades infrastructure investment used to be the preserve of government and its agencies alone. In the aftermath of the financial crisis many countries’ fiscal constraints have meant the public sector cannot afford these often huge expenditures. Official interest rates may have come down, yet risk premia on infrastructure projects have risen.
More and more, sovereign wealth and some pension funds have found this new collective asset class named ‘Infrastructure’, which has much in common with private real estate and private equity. Each of those players wants to shelter their balance sheets and prefer to finance major projects on a stand-alone basis. This is especially true for Public-Private Partnerships. IPFA help structure and arrange these financings with the following services:

• Defining the Partnership by assessing the nature and scope for a specific PPP. It includes the advantages and drawbacks of PPP as opposed to conventional procurement.

• Enabling PPPs by describing the process to achieve an enabling environment for the PPP under consideration.

• Strategizing PPP by outlining the process for an enabling environment through the appropriate PPP policy framework. This service introduces the main steps of a PPP program to all key players and defines a development path for PPP.

• Defining project phases
• Determining the risk allocation matrix
• Searching for partners
• Determining the optimal deal structure
• Financial modeling

• Deal Structure
  • Creating a deal structure that supports a balance between equity, senior debt, subordinated debt, operating credit and credit enhancement

• Financing
  • Obtaining letters of intent
  • Finding the best financing sources
  • Negotiating term sheets
  • Selecting underwriters

• Financing Execution
  • Developing a hedging strategy
  • Assisting with legal documentation
  • Managing the due diligence process

• Refinancing
  • Defining alternative financing opportunities that create shareholder value