InfraDeals trend report: 2015 - ?· InfraDeals trend report: 2015 Including project finance and advisory…

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  • InfraDeals trend report: 2015Including project finance and advisory league tables

    Criteria & contacts

    Global

    EMEA

    North America

    Latin America & the Caribbean

    Asia

    Renewables

    PPP

    United Kingdom

  • InfraDeals 2015 Trend Report 2 www.infra-deals.com

    Global: 2015 breakdown

    Asia, ex. ANZAC

    North America

    Greenfield

    Greenfield PPP activity

    Brownfield

    Refinancing

    USD 36.83bn

    USD 23.53bn

    USD 12.34bn

    USD 37.21bn

    USD 24.40bn

    USD 12.12bn

    26 Deals29 Deals

    2015 2014

    Latin America & the Caribbean

    Greenfield

    Greenfield PPP activity

    Brownfield

    Refinancing

    USD 39.14bn

    USD 4.38bn

    USD 7.59bn

    USD 29.44bn

    USD 7.98bn

    USD 5.17bn

    38 Deals30 Deals

    EMEA

    Greenfield

    Greenfield PPP activity

    Brownfield

    Refinancing

    USD 63.48bn

    USD 40.53bn

    USD 29.74bn

    USD 60.15bn

    USD 50.05bn

    USD 45.86bn

    93 Deals58 Deals

    Greenfield

    Greenfield PPP activity

    Brownfield

    Refinancing

    USD 19.99bn

    USD 1.25bn

    USD 0.68bn

    USD 19.58bn

    USD 9.92bn

    USD 3.22bn

    14 Deals10 Deals

    Australia and New Zealand

    Greenfield

    Greenfield PPP activity

    Brownfield

    Refinancing

    USD 7.95bn

    USD 16.65bn

    USD 14.63bn

    USD 12.90bn

    USD 17.55bn

    USD 14.32bn

    8 Deals11 Deals

    2015 2014 2015 2014

    2015 2014

    2015 2014

    http://www.infra-deals.com

  • * InfraDeals 2015 Trend Report 3 www.infra-deals.com

    Global: 2015 breakdown

    *Percentage of activity by transaction volumes

    35%

    22%

    29%

    5%

    3%

    6%

    Transport

    Greenfield

    Greenfield PPP activity

    Brownfield

    Refinancing

    USD 58.70bn

    USD 29.87bn

    USD 34.23bn

    USD 55.01bn

    USD 30.59bn

    USD 37.16bn

    68 Deals65 Deals

    Social Infrastructure

    Greenfield

    Greenfield PPP activity

    Brownfield

    Refinancing

    USD 13.88bn

    USD 2.31bn

    USD 13.90bn

    USD 11.36bn

    USD 2.10bn

    USD 8.02bn

    78 Deals55 Deals

    Renewables

    Greenfield

    Brownfield

    Refinancing

    USD 52.05bn

    USD 14.31bn

    USD 7.10bn

    USD 55.88bn

    USD 22.62bn

    USD 20.01bn

    Greenfield activity

    306 Deals337 Deals

    Power

    Greenfield

    Greenfield PPP activity

    Brownfield

    Refinancing

    USD 32.44bn

    USD 32.13bn

    USD 17.28bn

    USD 25.16bn

    USD 41.44bn

    USD 10.38bn

    7 Deals1 Deal

    Telecoms

    Greenfield

    Greenfield PPP activity

    Brownfield

    Refinancing

    USD 2.49bn

    USD 2.67bn

    USD 3.68bn

    USD 0.64bn

    USD 8.48bn

    USD 0bn

    4 Deals2 Deals

    Environment

    Greenfield

    Greenfield PPP activity

    Brownfield

    Refinancing

    USD 7.67bn

    USD 2.80bn

    USD 1.32bn

    USD 9.64bn

    USD 1.16bn

    USD 5.13bn

    19 Deals14 Deals

    2015 2014 2015 2014 2015 2014

    2015 20142015 2014

    2015 2014

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  • InfraDeals 2015 Trend Report 4 www.infra-deals.com

    In 2015 USD 221.20bn of project finance was raised to support USD 349.87bn worth of projects. This compares to USD 182.06bn raised to support USD 318.69bn in the 2014 period.

    The financing comprised USD 187.48bn of bank debt and USD 33.72bn of capital market financing. Notably, this equates to 84.75% of project finance deals financed by loans in 2015 compared to 82.2% in 2014, highlighting the continued dominance of traditional bank financing.

    USD 187.48bn of bank debt and USD 33.72bn in capital market debt mobilised in 2015 A total of 239 refinancings in 2015 raised a total of USD

    79.75bn in debt, far outweighing the 148 refinancings and USD 63.75bn in 2014. Sponsors are continuing to take advantage of the current favourable market conditions to significantly reduce the pricing on existing debt. The Spanish renewables sector accounted for 25 of these transactions, with investors becoming comfortable with the governments new energy decree.

    Transport remained the largest sector accounting for 35% of transactions. However, this was down from 39% in 2014. Renewables had an uptick from 23% to 28% of all deals.

    EMEA accounted for 44.61% of transactions in the period, Asia 22.15%, North America 21.07% and Latin America 12.17%.

    Marquee deals in 2015 include the AUD 10.26bn paid for NSW Transgrid, the innovative Thames Tideway project in the UK and the CAD 5.3bn Eglinton Light Rail PPP, Canadas largest ever PPP.

    Other trends in 2015 included core infrastructure auctions and sales processes with high valuations, high competition and full prices. The growth in institutional investors going direct has continued to increase. And greenfield PPP deal flow remains patchy in most regions.

    However, a few regions buck the trend. Canada continues to close around 20 PPPs a year, Germany has a significant highway PPP pipeline and Norway is putting together some EUR 20bn of greenfield projects.

    Clifford Chance claimed top spot in the legal advisory tables by both number (97) and value (USD 61.90bn). KPMG was top financial advisor by number (51), while PwC secured the top ranking by value (USD 32.11bn).

    Mott MacDonald was top technical advisor by number (69) worth USD 32.28bn. However, Arups 46 deals were worth a whopping USD 54.56bn securing them top spot by value.

    2015 (2014)

    1,147 deals closed with a value of USD 349.87bn (1,082, USD 318.69bn) USD 187.48bn via bank debt (USD 149.66bn) USD 33.72bn via capital markets (USD 32.40bn) 138 greenfield PPP deals closed worth USD 61.64bn (179, USD 75.56bn)

    Global Overview

    Global sector breakdown by value

    22%

    4%

    26%

    39%

    6%

    23%

    3%

    5%3%

    35%

    6%

    28%

    2014

    2015

    Other

    Environment

    Renewables

    Power

    Social Infrastructure

    Transport

    Telecoms

    Global deals by transaction type

    USD

    (m)

    0

    20,000

    40,000

    60,000

    80,000

    100,000

    120,000

    Q4Q3Q2Q1Q4Q3Q2Q1Q4Q3Q2Q12013 2014 2015

    Project Finance

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  • InfraDeals 2015 Trend Report 5 www.infra-deals.com

    Global: Top deals

    The project will prevent 39m tonnes of sewage currently discharged into the River Thames in a typical year along a 25km stretch of the Thames.

    Financial close - August 2015

    Sponsors - Allianz Capital Partners (34.26%), Dalmore (33.76%), DIF (10.66%), INPP (15.99%), Swisslife (5.33%)

    Equity - GBP 1.3bn

    Financing - GBP 1bn, 10-year revolving credit facility priced at under Libor + 100bps.

    USD 6,581mThames Tideway

    USD 7,378mNSW TransgridTransGrid is the largest high-voltage electricity network in Australia by electricity transmitted, spanning New South Wales and the Australian Capital Territory.

    Financial close - December 2015

    Hastings and Utilities of Australia with their partners in the NSW Electricity Network (NSWEN) consortium, will enter into a 99-year lease of TransGrids high quality network infrastructure assets. Funds invested with UTA will be used to satisfy the funding contribution to the consortium.

    Financing - ANZ, CBA, EDC, Natixis, Scotiabank, Westpac, DBS, BTMU, HSBC, UOB, RBC and JPMorgan.

    Three term loans of three and a half, five and seven-year tenors, a bridge facility of two years and a capital expenditure facility of three and a half years with a BBSY (bank bill swap bid) base rate.

    The project is a 25-year Build-Operate-Transfer (BOT). When completed the airport will be the largest in the world.

    Financial close - November 2015

    Sponsors - Cenzig Holding (20%), Kalyon (20%), Kolin (20%), Limak (20%), Mapa Construction (20%)

    Equity - USD 1,596m

    Financing - Bank loans totalling USD 5,693 over three facilities. Three state banks lent USD 3,725 in one 16 year tenor loan. Other financing was from commerical Turkish lenders.

    USD 6,385mIstanbul Third Airport

    Fortums sale of 71,000 km of electricity distribution and regional networks serving 0.9m customers.

    Financial close - June 2015

    Acquirer - AP-Fonden 1 (12.5%), Ap-Fonden 3 (20%), Borealis Infrastructure (50%), Folksam Life Insurance (17.5%)

    Seller- Fortum Corporation

    Equity - EUR 1.77bn

    Financing - Senior secured 5-year term loan of EUR 3.5bn. The debt is split across facilities comprising a five-year EUR 2.97bn term loan, a EUR 850m capex facility, a EUR 106m RCF facility and a EUR 390m subordinated facility. The pricing on the senior debt starts at between 90bps and 100bps over STIBOR.

    USD 7,200mFortum Sweden

    IFM inherits the remaining 66 years of the concession lease agreement between ITRCC and the State of Indiana implemented in 2006 for a 75-year period.

    Financial close - May 15

    Acquirer - IFM Global Infrastructure Fund (100%)

    Seller - Indiana Toll Road Concession Company

    Equity - USD 3.3bn

    Financing - USD 1.269bn acquisition term loan facility due 2020 and a USD 551m bridge loan facility due 2017, and USD 700m in private placement notes due 2045-2055. The acquisition term loan facility is a bullet structure accruing interest at the 3-month LIBOR rate, swapped to a fixed 4.23% all-in rate.

    USD 5,725mIndiana Toll Road

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  • InfraDeals 2015 Trend Report 6 www.infra-deals.com

    Global: Top deals

    USD 4,071mEglinton Crosstown LRT Largest PPP project in Ontario. The DBFM of a 19km transit line that will include 25 stations and stops. Part of Metrolinxs regional transportation plan designed to reduce congestion.

    Financial close - July 2015

    Sponsors - Aecon (25%), EllisDon (25%), Grupo ACS (25%), SNC-Lavalin (25%)

    Equity - USD 73.6m

    Financing - CAD 543m in short term bank debt, CAD 565m amortizing 4.651% bond due 30 September 2046 and CAD 166m bullet 4.555% bond due on 30 June 2051.

    35-year contract for the Line 2 subway PPP. The concessionaire will be responsible for roughly USD 2.1bn in total investments, while the city government will provide USD 3.7bn in subsidies.

    Financial close - October 2015

    Sponsors - ACS (25%), FCC (18.25%), Salini Impregilo (18.25%), Ansaldo STS (16.9%), Ansaldo Breda (11.6%), Cosapi (10%)

    Financing - USD 1.15bn 19-year bond yielding 5.875%, a USD 800m 20-year ECA facility and a USD 450m 20-year Inter-American Development Bank loan. Separately, the consortium will sign a VAT facility to pre-finance VAT expenses and a USD 320m revolving construction facility.

    USD 5,700mLima Subway Line 2

    The new funding will be used to complete the final portion of the 301km route linking Bursa to Izmir (phase 2B), and to refinance the sections under construction for the Gebze-Orhangazi-Bursa link.

    Financial close June 2015

    Sponsors - Astaldi, Gocay, Makyol, Nurol and Ozaltin

    Financing - USD 4.9bn term loan with a 15-year tenor. The tenor includes a four-year initial grace period. Following the financing, the rebalancing of the debt:equity ratio for the project is 78:22 (from the initial 50:50) with no need for additional equity contributions from the sponsors.

    USD 4,950mGebze-Izmir Toll Road

    APA Groups acquisition of BG Groups Queensland Curtis natural gas (QCLNG) pipeline. The 540km pipeline runs from the Surat Basin to an LNG processing and export facility at Curtis Island

    Financial close - June 2015

    Acquirer - APA Group (100%)

    Seller - BG Group

    Equity - AUD 1.84bn

    Financing - Two-year AUD 4bn bridging loan facility, an AUD 100m operating capital facility and AUD 1.84bn in equity raised through a rights issue. Bridge loan subsequently repaid by USD 1.44bn worth US 144a bond as well as USD 2.3bn worth of medium-term notes in the Euro and Sterling bond markets.

    USD 4,600mBG Group Gas Pipeline

    Freeport LNG secured USD 3.7bn in project financing for the last of three production facilities at the liquefied natural gas (LNG) export terminal in Texas.

    Financial close - April 2015

    Sponsor - Freeport LNG Development LP (100%)

    Financing - A 27 bank syndicate provided a USD 3.64bn seven-year, mini-perm construction facility. The senior debt was in a single tranche. Margin = 175 bps over Libor during construction and 200 bps after construction is completed in 3Q19. Another USD 925m in equity is being provided through mezzanine debt financing.

    USD 4,600mFreeport Train Three

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  • InfraDeals 2015 Trend Report 7 www.infra-deals.com

    Global: Financial advisory

    Financial advisors by valueRanking Q1 2015 Q1 2014

    Q1 2015

    Q1 2014 Company name

    Value (USD m)

    Deal count

    Value (USD m)

    Deal count

    123456789

    101112131415

    Financial advisors by deal countRanking Q1 2015 Q1 2014

    Q1 2015

    Q1 2014 Company name

    Deal count

    Value (USD m)

    Deal count

    Value (USD m)

    123456789

    101112131415

    Financial advisors by valueRanking 2015 2014

    2015 2014 Company name Value (USD m)Deal

    countValue

    (USD m)Deal

    count

    1 6 PricewaterhouseCoopers 32,114 40 15,497 362 1 Macquarie Capital 29,884 36 27,662 243 8 UBS Investment Bank 27,723 16 13,614 44 11 KPMG 27,670 51 11,246 355 12 EY 25,988 42 10,104 296 4 Royal Bank of Canada 24,708 26 18,167 277 18 Deutsche 23,379 7 7,314 68 7 Goldman Sachs 22,288 19 15,034 149 3 Citigroup 19,378 16 19,996 13

    10 2 BNP Paribas 17,972 9 20,726 2011 5 Morgan Stanley 14,955 13 17,064 1212 23 JP Morgan 14,391 5 4,927 413 21 Evercore Partners 14,314 6 6,354 514 17 Santander 11,167 30 7,339 3915 13 HSBC 10,967 13 9,130 716 10 Rothschild 9,949 9 11,889 1817 20 Danske Bank 8,173 3 6,493 318 58 National Bank of Canada 7,263 6 835 219 81 Astris Finance 6,279 5 402 720 30 Scotiabank 6,142 3 3,412 6

    Financial advisors by deal countRanking 2015 2014

    2015 2014 Company nameDeal

    countValue

    (USD m)Deal

    countValue

    (USD m)

    1 3 KPMG 51 27,670 35 11,2462 4 EY 42 25,988 29 10,1043 2 PricewaterhouseCoopers 40 32,114 36 15,4974 6 Macquarie Capital 36 29,884 24 27,6625 1 Santander 30 11,167 39 7,3396 5 Royal Bank of Canada 26 24,708 27 18,1677 11 Goldman Sachs 19 22,288 14 15,034

    8= 33= UBS Investment Bank 16 27,723 4 13,6148= 12 Citigroup 16 19,378 13 19,996

    10= 13 Morgan Stanley 13 14,955 12 17,06410= 16= HSBC 13 10,967 7 9,13010= 7= Deloitte 13 2,909 20 9,08813= 20= Jones Lang LaSalle 10 269 6 14613= 10 Elgar Middleton 10 118 15 16715= 7= BNP Paribas 9 17,972 20 20,72615= 9= Rothschild 9 9,949 18 11,88915= 15 Barclays 9 5,733 8 12,02318= 16= Green Giraffe 8 5,369 7 5,17718= 38= Sumitomo Mitsui Banking Corporation 8 3,096 3 7,68018= 69= Rubicon Infrastructure Advisors 8 670 1 370

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  • InfraDeals 2015 Trend Report 8 www.infra-deals.com

    Global: Legal advisory

    Financial advisors by valueRanking Q1 2015 Q1 2014

    Q1 2015

    Q1 2014 Company name

    Value (USD m)

    Deal count

    Value (USD m)

    Deal count

    123456789

    101112131415

    Financial advisors by deal countRanking Q1 2015 Q1 2014

    Q1 2015

    Q1 2014 Company name

    Deal count

    Value (USD m)

    Deal count

    Value (USD m)

    123456789

    101112131415

    Legal advisors by valueRanking 2015 2014

    2015 2014 Company name Value (USD m)Deal

    countValue

    (USD m)Deal

    count

    1 2 Clifford Chance 61,902 97 50,146 672 4 Linklaters 45,337 48 34,100 433 1 Allen & Overy 39,086 67 54,761 694 3 Ashurst 32,545 46 37,706 425 8 Herbert Smith Freehills 32,441 36 23,977 296 5 Freshfields 32,237 27 26,753 297 11 Norton Rose Fulbright 31,046 66 18,661 678 6 White & Case 28,514 33 26,229 359 17 DLA Piper 27,204 46 10,412 26

    10 10 Allens 24,917 22 22,713 2611 12 Milbank 24,563 38 17,203 3112 16 Chadbourne & Parke 23,072 47 12,386 1913 14 Hogan Lovells 19,971 27 12,729 2014 7 King & Wood Mallesons 18,196 27 24,748 3715 18 Torys 17,618 21 9,826 2816 19 Baker & McKenzie 13,249 23 7,441 1817 9 Latham & Watkins 13,110 26 23,683 2218 39 Gilbert and Tobin 12,681 10 3,236 519 15 Shearman & Sterling 12,555 18 12,641 2020 35 Orrick Herrington & Sutcliffe 12,096 26 3,926 12

    Legal advisors by deal countRanking 2015 2014

    2015 2014 Company nameDeal

    countValue

    (USD m)Deal

    countValue

    (USD m)

    1 2= Clifford Chance 97 61,902 67 50,1462 1 Allen & Overy 67 39,086 69 54...