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Infrastructure debt

Infra debt climbed a mountain to reach investors
High-grade credit-like qualities attract investors

Infra debt: to establish an asset class

Among institutional investors there is a significant knowledge base for investing in infrastructure equity. It generally provides investors with a reliable dividend and long-tailed assets. In terms of risk infrastructure equity enjoys almost high yield credit-like characteristics. 

By contrast, the debt issued by infrastructure projects has long been the terrain of banks. Increasingly, however, institutional investors are getting involved. But the characteristics of infrastructure debt are much more akin to high grade credit. Institutional investors used to invest in infra equity are not likely to settle for the lower risk-return parameters.

At Roodhals, our experience in the field of infrastructure and credit has enabled us to engage with institutional investors to make the case for infra debt investments via established investment funds. Not only can we make the case for investment, we can also assist making infra debt a recognised and eligible asset class. For example, we have organised an Infra Debt Academy for one of our clients to help Dutch institutional investors better appreciate the characteristics of the asset class. 

Well established investment funds allocate to infra debt