Infrastructure Data Insights

Public investment in infrastructure is more effective in increasing economic output than other types of public spending

Investment in public transit infrastructure can contribute to creating more inclusive societies. Public transit services are more often used by lower-income households, women and ethnic minorities.

Regulatory capital frameworks require banks and insurers to put aside more capital for infrastructure investments than is warranted by their historical credit performance

New insights from the GI Hub’s Infrastructure Monitor and InfraCompass show that a strong enabling environment matters for encouraging more private infrastructure investment, regardless of income level.

While total infrastructure investment with private participation has increased over the past decade, this has been driven by secondary market transactions. Primary market transactions are low and have been declining.

Private investment in social infrastructure has seen a sharp decline over the past decade, driven by the healthcare and social housing sub-sectors. In the transport sector, around half of private investment over the past decade has been in the roads, tunnels and bridges sub-sector.

Europe has seen the largest number of infrastructure transactions with private participation over the past decade, although the average value of these transactions tends to be relatively small compared with other regions.

The value of private investment in PPP infrastructure has gradually declined over the past decade.

Globally, foreign equity in private infrastructure deals amounted to around 12% of total private infrastructure investment over the past decade, with Sub-Saharan Africa having a particularly high reliance on foreign equity.

Sustainable low-carbon private investments have intensified in high-income countries. To strengthen global response to combat climate change, such investments must be accelerated in developing countries.

Private infrastructure investment in low-income countries is almost entirely denominated in foreign currencies, implying a structural foreign exchange risk for investors.

Over the past decade, about three-quarters of private infrastructure investment globally was debt financed, and about a quarter was equity financed.

Infrastructure equities have an attractive risk-return profile providing a competitive alternative to other investment options.

Merchant infrastructure, larger investors and the transport sector have experienced larger declines in returns due to COVID-19.

Social infrastructure is the best performing segment among all country income groupings, according to new data from Moody’s that provides insights into the debt performance for infrastructure industry sector. Social infrastructure includes healthcare, education and public (community housing, prisons) facilities. The data also reveals transport and energy infrastructure perform differently in relative terms for depending on country income grouping.

The highest recoveries on infrastructure debt default occurs in Africa, the Middle East and Eastern Europe, according to new data from Moody’s shows which regions of the world have the highest and lowest default rates on infrastructure and other project finance debt investments.  Ultimate recovery refers to a loan default for which recoveries have been realized following emergence from default. Emergence from default occurs when overdue interest is repaid or with liquidation or restructuring with no subsequent default or lender being taken out of the deal after repaying the defaulted loan.