Financing infrastructure projects became a key area of expertise for deal-makers who were able to create innovative capital market solutions.
Infrastructure finance has seldom been as pivotal to the well-functioning global economy as in recent years. Between efforts to reestablish essential commodity pipelines amid the war in Ukraine; the timely reconstruction efforts of Turkey and Morocco after 2023’s disastrous earthquakes; and the continuous technology investment in the US, the Middle East, and China, future economic growth has become ever-more dependent on such initiatives.
However, while governments and multilateral institutions continued to prioritize infrastructure, private deal-making felt the blow delivered by higher interest rates and did not quite keep up.
According to Preqin, infrastructure funds raised $87.75 billion last year, a dismal 50.2% lower, year over year, from the $176.1 billion recorded in 2022. Deal value also declined 26.6% last year, totaling $308.5 billion in 2023, down from $420.4 billion the year before.
Our winners are the ones who were best able to pull through the challenging conditions to keep the economy moving forward despite adversities.
—TM
Global | Banco BTG Pactual
Infrastructure modernization is a crucial priority; and Banco BTG Pactual (BTG) is leading many such initiatives regionally and globally as one of the largest investment banks in Latin America, with a footprint in North America and Europe.
Among the firm’s accomplishments in 2023 were acting as lead bookrunner for Electrobras, or Centrais Elétricas Brasileiras SA — a company that boasts an installed capacity of 43 gigawatts with 97% of it being clean energy. The offering was one of the largest ever priced in Brazilian fixed income capital markets and the biggest transaction ever issued by Electrobras.
With its specialized team providing financial advisory, issuance coordination, and specific financing structures for energy and infrastructure projects, the bank has differentiated itself by leading high-profile domestic and cross-border financing deals across various aspects of infrastructure, including electric power generation and transmission, renewable energy, water sanitation and waste management services.
Notably, within debt capital markets, BTG has consistently demonstrated its expertise in arranging complex structured transactions with its leadership in the issuance of infrastructure debentures and advisory services to credit market issuers and participants. To extend its global reach and to attract investment from international institutional investors, BTG’s asset management division has managed a series of infrastructure funds that target the transportation, power, renewable energy, healthcare services, and life sciences sectors. —DS
Africa | Rand Merchant Bank
For a long time, African governments had been left to shoulder the burdens of infrastructure financing. The situation is changing with increasing private sector participation across areas like renewable energy, railways, and ports. Rand Merchant Bank is buoyant, and the trend will continue.
Infrastructure finance has become Rand Merchant’s forte. The bank has been involved in numerous projects supporting economic growth by deploying a model balancing risk and return and prioritizing impacts. The bank acted as the lead arranger of syndicated facilities that mobilized $2.4 billion for Tanzania to finance a major railway project to boost regional trade and economies significantly. Rand Merchant has also arranged financing deals to enable South African renewable energy company African Clean Energy Developments to eventually deliver 520 MW of wind energy. —JN
Asia-Pacific | Asian Infrastructure Investment Bank
This year’s regional winner for infrastructure finance,Asian Infrastructure Investment Bank(AIIB), kicked off 2024 with a record-breaking $3 billion funding of a five-year sustainable-development bond. The financing effort is part of the Beijing-based bank’s “Infrastructure for Tomorrow” campaign—prioritizing green projects with sustainability at the core. AIIB lived up to that motto throughout 2023 when it approved a proposal to issue $1 billion in credit guarantees against sovereign-backed loans made by the World Bank’s lending arm. AIIB is also helming a $571 million project to improve 4,350 miles of roads across 11 regions in the northern Côte d’Ivoire and to maintain a further 9,321 miles of rural roads there. The AIIB is advancing $200 million, the World Bank $300 million, and the rest will come from the Ivorian government. The AIIB is a young company, having begun operations in January 2016. Since then, it has grown to have 109 members worldwide and capitalized at $100 billion. —AN
Central & Eastern Europe | Akbank
Our Best Investment Bank for Infrastructure Finance in Central and Eastern Europe, Akbank, takes home its award for relentless humanitarian efforts in reconstructing several Turkish cities after the devastating earthquake that shook the country in 2023. In partnership with the European Bank for Reconstruction and Development (EBRD), as part of its Türkiye-Disaster Response Framework, Akbank channeled as much as $90 million into various sectors of the economy. The allocated funds were intended to support the impacted communities in revitalizing small and midsize enterprises while broadening access to financial prospects. The project was essential to the reconstruction efforts within numerous regions of the country affected by the quake. —TM
Latin America | Bradesco BBI
In Latin America, Bradesco BBI is leveraging one of the largest investment banking teams in the region to deliver comprehensive financing and merger expertise in the infrastructure sector. The bank has executed numerous mandates on projects across various industries, including water and sanitation, power and energy, renewables, transportation, logistics, and highways and toll roads. Expanding global shipping networks is essential in order for companies in Latin America to continue to grow through international trade. Bradesco is a key participant with the region’s exporters and importers as the leader in port terminal transactions. This factor has been critical to Latin America’s post-pandemic recovery. As the definition of infrastructure assets evolves to include a broader range of sectors, Bradesco is poised to respond quickly to new opportunities, given its deep industry coverage of over 200 companies in Latin America, including over 90% of companies in the MSCI Brazil Index. —DS
Middle East | Standard Chartered
Operating across nine markets in the Middle East, Standard Chartered (StanChart) is firmly entrenched; and its long-standing presence in the region continues to expand, given its strong capabilities in leading high-profile infrastructure transactions. Infrastructure finance increasingly overlaps with many industries, including oil and gas, clean energy, and technology; and StanChart has differentiated itself through its deep expertise in various sectors and its robust execution capabilities involving both conventional and Shariah-compliant financings. By leading complex transactions involving critical sectors like ports, logistics hubs, industrial and business parks, water treatment, renewables, and power generation, StanChart has established itself as a vital partner for governments, public investment funds, and large corporate clients for M&A and financing mandates in the infrastructure sector. Multinational clients also benefit from the bank’s international reach by leveraging a global network of nine hubs and 27 locations for complex structuring and execution capabilities, with innovative and customized solutions. —DS
North America | Goldman Sachs
The demand for infrastructure financing and investment is growing; and Goldman Sachs is well positioned as a leader in this area, with industry coverage through the firm’s public sector and infrastructure group providing M&A and financing solutions for state and local governments, not-for-profit healthcare systems, higher education institutions, public power utilities, transportation and mass transit agencies, airports and seaports, and sports franchises.
As the scope of infrastructure has evolved beyond roads, railways, and bridges, Goldman is building on recent legislation in the US, including the Infrastructure Investment and Jobs Act and the Inflation Reduction Act, which have provided incentives to advance infrastructure investment beyond these traditional areas. This includes expanding the country’s digital infrastructure; modernizing the energy grid in the US to accelerate the transition to clean and renewable energy; and improving supply chain logistics, communications, and transportation. Additionally, investment banking mandates are complemented by opportunities to invest in this asset class through the firm’s asset management arm, which recently launched a $4 billion fund for investment in infrastructure projects tailored to institutional and high net worth investors. —DS
Western Europe | BNP Paribas
It was a fantastic year for BNP Paribasacross various facets of the investment banking world, with the bank topping growth expectations in several markets and asset classes.
However, BNP landed some of its most important landmark accomplishments in infrastructure finance. The French-based giant maintained focus on its long-term green transition goals and joined efforts with multilateral institutions to support development and reconstruction amid 2023’s volatile landscape.
In partnership with the EBRD, the French behemoth invested around $80 million in developing green energy infrastructure in Poland. The bank also launched its flagship Climate Impact Infrastructure Debt fund with a capital-raising target of €500 million to €750 million (about $542 million to $812 million), which aims to support the long-term transition of clean energy across different geographies in Europe. Also, alongside the EBRD, BNP’s Turkish subsidiary Finansal Kiralama, provided an essential $28 million to support Turkey’s green energy transition, in the aftermath of the destructive earthquake early last year. —TM
| Best Infrastructure Banks | |
|---|---|
| Global | Banco BTG Pactual |
| Africa | Rand Merchant Bank |
| Asia-Pacific | Asian Infrastructure Investment Bank |
| Central & Eastern Europe | Akbank |
| Latin America | Bradesco BBI |
| Middle East | Standard Chartered |
| North America | Goldman Sachs |
| Western Europe | BNP Paribas |
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