News

Agency predicts boom in Asian infrastructure

shutterstock_563320966India and Indonesia are tipped to lead an infrastructure boom in South and Southeast Asia that will create numerous opportunities for investors in infrastructure debt. S&P Global Ratings has awarded mostly stable ratings to the 24 rated infrastructure companies it rates in the region and predicts their revenues will grow between 4-6% a year. By 2030, infrastructure spending in South and Southeast Asia will total $9.5 trillion, according to the Asian Development Bank. “Some of the world's most intensive investments in infrastructure will take place in countries in South and Southeast Asia,” said the agency, adding that, “the region's substantial investments in infrastructure will support growth and development in the region”. The report indicates attractive opportunities for investors in the increasingly popular asset class of infrastructure debt. However, the agency warns that “credit profiles could widen”. Infrastructure companies that rely on large amounts of debt are vulnerable to regulatory risks, rising interest rates or lower-than-expected revenues, it said. Some firms may also face disruption from new technologies, such as electric vehicles or renewable energy. ©2018 funds global asia

Executive Interviews

INTERVIEW: Joining the family

Dec 12, 2017

An acquisition has increased the visibility of Natixis investment managers in Australia. George Mitton talks to its local chief executive.

INTERVIEW: ‘It cannot be excluded’

Sep 27, 2017

Bond Connect’s launch means China’s onshore bond markets are more accessible than ever. Mo Ji, an economist at amundi, tells George Mitton why that matters.

Roundtables

REAL ESTATE ROUNDTABLE: In search of a home

Jul 17, 2017

From Korean warehouses to Chinese hospitals, investors’ holding periods are growing in Asia. But in a market awash with liquidity, so is competition for assets. Our panel in Hong Kong discuss real estate investment.

ROUNDTABLE: More transparency, less certainty

Mar 20, 2017

Our panel discussed exchange-traded funds, regulatory overdrive and whether mutual fund recognition has been a failure. Chaired by George Mitton in Hong Kong.