Infrastructure securitization: Asset class builds momentum

The refinancing of the Grupo Ferrovial takeover of BAA will be a showcase for infrastructure securitization, the first of a number of high-profile deals expected this year.

The ABS market has long looked to infrastructure as its next big asset class. So far, though, this has produced rather more talk than action. But all that is set to change. “There is now a desire to look at real financial alternatives for infrastructure,” says Tim Drayson, global head of securitization at BNP Paribas. “Governments have fudged the issue in the past but Eurostat has now put paid to that.”

The blending of whole business, opco/propco, LBO and project financing should bear fruit.

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