H1 2021 infrastructure lenders rankings
Vikas Makwanainspiratia reviews the top lenders in infrastructure for H1 2021, revealing a lending trend towards transport and digital infrastructure
In H1 2021, aggregate lending in transport sector amounted to US$ 5.93 billion with 16 closed deals where as digital infrastructure clinched US$5.85 billion with a total of 15 closed deals. The top lender had its hand in a number of these, amassing an allocated lending volume of US$7.2 billion (£5.3bn €6.1bn).
SMBC's largest deal for H1 2021 was its participation in financing fibre-to-the-home (FTTH) platform, Unsere Grune Glasfaser (UGG), in Germany – which also ranked as the top deal by transaction value for the H1 2021 period. SMBC provided US$1.97 billion (£1.4bn €1.7bn) alongside an 11-strong consortia of international lenders.
UGG is formed by Allianz and Telefonica Infra, and is focused on rolling out wholesale open-access networks across rural and semi-rural areas throughout Germany.
Top ten lenders by allocated volume, H1 2021
Source: inspiratia | datalive
Another notable deal by allocated volume is the acquisition of Universal Terminals, an independent petroleum products storage terminals in Singapore and the Asia Pacific. Jurong Ports acquired a 41% stake in Universal Terminals, for which SMBC contributed a debt package of US$1.1 billion (£806m €936m) with other banks, including United Overseas Bank.
DIF ranked at the second position with an allocated volume of U$1.5 billion (£1.1bn €1.2bn) across one closed deal - its U$1.5 billion (£1.1bn €1.2bn) partnership with PERENfra LLC. The partnership aims to build a portfolio of late-stage developments in the municipal and industrial water market.
HSBC comes in third, also with one deal. The bank provided a US$820 million (£600m €679m) term loan with a seven-year tenor towards the refinancing of North Sea Midstream Partner's (NSMP) Teesside Gas Processing plant in northeast England, UK.
Deal count
Analysis of top lenders by deal count indicate that SMBC remains at the top of the rankings.
On its home turf, SMBC provided loans totalling US$1.9 billion (£1.4bn €1.6bn) towards the Kansai, Osaka and Kobe international airport concessions.
Sponsors for the concession are ORIX, and French concessionaire Vinci Airports each if which own a 40% share on the concession. They have a 44-year concession contract expiring on 31 March 2060.
Top 10 lenders by deal count, H1 2021
Source: inspiratia | datalive
Following second is Societe Generale with a total of seven closed deals.
The French bank's largest allocation of debt was towards French data centre operator, DATA4, expansion plan. DATA4's plans have a transaction value of US$1.22 billion (£860m €1bn) supported by US$736 million (£536m €620m) debt package from Societe Generale, SMBC and Deutchse Bank. With the funds, DATA4 aims to double its size in Paris from 100MW to 200MW, potentially making it into the most powerful data centre campus in Europe.
NordLB comes in third with five closed deals. Notably, the German bank was part of a consortium of lenders who provided a US$575 million (£412m €474m) debt package for the construction of the D4 Highway, Czech Republic's first highway under a a DBFOM model.
Q2 2021
In Q2 2021, SMBC ranked as the top lender with 10 closed deals and a total allocated volume of US$1.72 billion (£1.26m €1.46m).
A chunk of SMBC lending in Q2 2021 went towards the Calisen's takeover by BlackRock's Global Energy & Infrastructure Fund III (GEPIF III), Mubadala Investment Company's Ninteenth Investment Company and Goldman Sachs' West Street Infrastructure Partners (WSIP). The deal has a transaction value of US$1.99 billion (£1.4bn €1.7bn) with SMBC contributing a debt sum of US$696 million (£500m €579m).
Societe Generale took second place as the top lender based on both transaction value and deal count for Q2 with a total of four closed deals and total transaction value of US$397 million (£291m €337m). Deutcshe Bank rounds up top three by total allocated volume of US$322 million (£235m €273m) and two deals.
Top 10 infrastructure lender by allocated volume and deal count, Q2 2021
Source: inspiratia | datalive
The analysis shows interesting lending trends towards the digital infrastructure sector.
H1 review of 2021 shows similar correlation of growth of the data centres market and lending by the top lenders.
Outstanding Lender is one of the many award categories in our inaugural Energy & Sustainability Awards, and we are already on fire reviewing the exciting deal flow so far. Find out more about the categories and how to participate here: www.inspiratiaawards.com
