The infrastructure sector is fertile ground for traders as producers around the world look to expand.
Throughout 2024, the infrastructure sector was very active for investment bankers, with strong deal flow across renewable energy, digital transformation, and critical infrastructure projects. Major banks such as Absa Bank, ICBC, OTP Bank, Bradesco BBI, JP Morgan and Intesa Sanpaolo participated in significant transactions around the world, highlighting the strong demand for financing for sustainable and strategic infrastructure investments. Standard Chartered has emerged as a top lender in the infrastructure finance space, focusing on both emerging markets and sustainable projects. In Saudi Arabia, for example, we helped complete a $677 million desalination project that delivered 600,000 cubic meters of water every day.
“Trade activity in the travel, logistics, and infrastructure sector increased significantly in 2024 compared to the previous year, with total transaction volume reaching $157 billion in 2024 compared to $115 billion in 2023,” the McKinsey report said. “However, activity remained below pre-pandemic levels ($173 billion in total deals in 2019) and well below the peaks in 2021 and 2022. Similarly, the share of private equity deals in the sector increased, from 14% of all deals in 2023 to 22% in 2024.” — Anne
global, middle east
standard chartered
Standard Chartered is a leading international bank known for its work in the infrastructure finance sector. Focusing on emerging markets and promoting social and economic development through sustainable finance. Much of the bank’s infrastructure financing efforts are focused on renewable energy and clean water projects, including several waste-to-energy projects in the Middle East. One of them is the first such factory to be built in Abu Dhabi.
The Abu Dhabi waste-to-energy project will be developed by Emirates Water and Power Company and Tadwia (formerly Abu Dhabi Waste Management Company). Standard Chartered underwrote and advised on the facility. The proposed plant would be a double-track facility capable of processing 900,000 tonnes of municipal solid waste per year, generating approximately 80MW of electricity for the regional grid and powering 50,000 homes. The plant will be one of the largest of its kind and will reduce CO2 emissions by approximately 1.5 million tons per year.
Rawabi Water Desalination Company is the developer of a desalination plant in Saudi Arabia that uses reverse osmosis technology to treat 600,000 cubic meters of seawater daily. The project supports the Ministry of Environment, Water and Agriculture’s plan to provide 92% of the country’s urban supply with desalinated water by 2030. Standard Chartered was integral to the closure of the 2.5 billion rand (approximately $677 million) facility. The project will be financed and eventually sold to Saudi Water Partnership Company under a 25-year purchase agreement. -morning
Africa
absa bank
Bridging Africa’s annual infrastructure funding gap, estimated by the African Development Bank to be between $130 billion and $170 billion, poses a challenge. Governments are strapped for resources, and private companies are stepping up to take on important projects. Absa Bank facilitates the implementation of major projects essential for economic development by providing financing to private companies. We aim to be at the forefront of the transition to a low-carbon, inclusive and circular economy on the continent.
In South Africa, Absa is involved in financing the 150 MW Engie and 75 MW Ukukala solar projects. Both are essential to advancing the Republic’s transition to renewable energy. The bank is also involved in an R8 billion (approximately $439 million) deal to expand data services infrastructure provider Teraco’s reach and accelerate digital transformation across Southern Africa. As well as participating directly in projects, the bank provides support through its global links in the UK and US and its corridor approach to China, India and the Middle East, enabling global companies to take advantage of opportunities in Africa’s infrastructure sector.
—JN
Asia Pacific
ICBC
Last year, two notable REIT projects established ICBC as the region’s premier infrastructure bank. First, ICBC coordinated the issuance of the 5.7 billion yuan (approximately $789 million) ICBC Hebei Expressway REIT. As the first public REIT in Hebei Province, this landmark project is part of the Rongwu Expressway, a key element of the expressway network in Xiong’an New Area. REITs support the development of Beijing, Tianjin, and Hebei and serve as important energy transportation arteries.
Second, ICBC represented Inner Mongolia’s first public infrastructure REIT, including arranging the sale of ICBC Mongolia Clean Energy REIT for RMB 1.1 billion. This innovative project covers two wind farms with a total installed capacity of approximately 150 MW and is estimated to generate more than 400 million kWh of green electricity per year, displacing more than 120,000 tons of standard coal while reducing carbon dioxide emissions by more than 300,000 tons. The new REIT supports the national strategy to develop Inner Mongolia as a major energy base and demonstrates ICBC’s commitment to green finance and regional development. —L.Z.
Central and Eastern Europe
OTP Bank
As the war in Ukraine rages on for another year, securing and improving Central and Eastern Europe’s key infrastructure lines has become more than just a matter of economic growth. It has become essential to the region’s geopolitical security.
Against this backdrop, OTP banks have established themselves in the region’s major economies and become important conduits for reliably transporting resources across borders.
OTP Bank’s Ukraine branch, in collaboration with the European Bank for Reconstruction and Development, has extended a new $220 billion unfunded portfolio risk-sharing facility to support the country’s recovery amid ongoing war. The partnership will also provide $33 billion to neighboring Moldova, which will help support the country’s agricultural pipeline and private sector. Hungary-based OTP has also entered into a partnership with the Asian Infrastructure Investment Bank to support renewable energy generation and improve energy efficiency in Croatia, Hungary and Serbia. —TM
latin america
Bradesco BBI
Brazilian giant Bradesco BBI won this award for the second year in a row after raising a whopping $500 million across 27 infrastructure deals. To maintain its leadership in this field, Bradesco has participated in several different types of products, leveraging its versatility and unparalleled market breadth.
Among the bank’s major infrastructure transactions, the bank acted as pre-bid advisor for the 2.2 billion reais (approximately $377 million) Ecolodobias concession in the Nova Raposo Lotto Highway System, a project aimed at transforming one of Brazil’s largest highways. The bank also arranged a real long-term loan of R$1.3 billion for Triangulo SPE, another major highway network project in the country. In M&A, Bradesco arranged the approximately $1.2 billion acquisition by Equatorial Energia of 15% of national water and sanitation company Sabesp, strengthening the country’s water distribution infrastructure. —TM
North America
JP Morgan
JPMorgan made significant strides in infrastructure finance in 2024, leading high-impact deals across renewable energy and telecommunications.
The company took advantage of the opportunity created by the 2022 American Inflation Control Act (IRA) to invest $680 million in tax equity financing for a portfolio of solar and energy storage assets in Texas and Arizona. The project is owned by Denmark’s Orsted and is one of the largest solar power and storage tax and equity transactions using a combined production tax credit and investment tax credit structure created by the IRA. By the end of the year, Orsted’s U.S. solar portfolio reached 2 GW of generation capacity.
In the telecommunications sector, JPMorgan also arranged a $500 million term financing facility with Tillman Infrastructure, a leading wireless communications infrastructure provider. The loan is part of a $1 billion financing package, with the funds used to refinance existing loans and support growth strategies to meet growing demand from wireless carriers and infrastructure service providers. —Anne
Western Europe
Intesa Sanpaolo
Italy’s Intesa Sanpaolo, which will participate in around 20% of all infrastructure finance transactions in Europe, the Middle East and Africa in 2024, leveraged its leading position and expertise beyond its home country, with a particular focus on the Spanish market.
In October, the company partnered with the European Investment Bank (EIB) to build a portfolio of up to 1 billion euros (about $1.1 billion) of bank guarantees aimed at supporting the construction of wind farms across the continent. The agreement is part of the EIB’s €5 billion plan to strengthen the sector, with the potential for financing of up to €8 billion. Intesa Sanpaolo has participated in 13 strategic projects in the energy and infrastructure sector across the Spanish market, amounting to approximately €27 billion over the past two years. —TM
