A bridge between investors and projects

Imagine if there was an efficient and effective way to help to bring together potential investment capital with infrastructure projects in need of funding. Well, now there is, reports Andy Walker.

Estates and Infrastructure Exchange (EIX) is the world’s first infrastructure trading platform to create a bridge between the billions of underinvested capital and the thousands of globally unfunded projects.

Currently, we see an almost unprecedented need for capital investment in infrastructure and large-scale regeneration projects. After many years of underinvestment, capital is required to extend and improve rail networks, build social housing, create new energy facilities, refurbish roads and bridges, build new link roads, expand universities, hospitals and schools, improve ports and airports and redevelop large swathes of global cities through complex regeneration projects.

EIX works with national governments, local government, landowners, universities, energy and transport companies to package and fund major development, regeneration and construction projects as bonds. The exchange matches these with professional investors, offering them the ability to buy and sell infrastructure bonds on a risk-adjusted basis.

The projects on EIX are available as liquid tradable debt and equity style instruments. This ensures that the project owners receive the capital at the best price and investors get a constant supply of opportunities so they can build a portfolio according to their appetite for risk.

EIX will be a regulated investment exchange to finance large projects, specifically large infrastructure and regeneration projects. Its core aim is to run a transparent trading platform and efficient, risk-adjusted pricing mechanism that allows investors to buy and sell stakes in large infrastructure bonds, which have been rated. EIX turns large infrastructure projects, which are highly illiquid, long-term investments into blocks of tradable debt and equity style instruments.

“We accelerate infrastructure and regeneration project funding by essentially allowing investors to buy smaller pieces of larger projects, says EIX CEO Mark Worrall. “At this moment in time the gap in infrastructure finance for essential projects stands at $2 trillion and is growing. EIX’s aim is to close that gap through risk sharing. The concept is to allow for the first time the sharing of risk for any investors of a professional class. EIX has also identified an immediate need by the insurance sector, EIX’s bond instruments have been designed to meet the Solvency II qualifying investment threshold,” said Worrall.

The EIX funding process follows a prescribed set of steps (see image above) to package the project with the aim of securing an investment grade rating for the project (BBB or better).

For further information on Estates and Infrastructure Exchange and how it can accelerate project funding visit www.eix.global 

If you would like to contact Andy Walker about this, or any other story, please email awalker@infrastructure-intelligence.com.