Telegraph.co.uk
25 Apr 2008
Thomson Financial data shows that financial sponsors attempted four infrastructure deals worth just $121m (£61m) in Britain during the first quarter of the year compared to four deals worth $11.3bn in the fourth quarter of last year. During the credit boom, infrastructure funds, including Australian groups Macquarie and Babcock & Brown, led some of the most audacious takeovers of Britain's water, electricity network and transport assets.
Macquarie led a consortium that paid around £8bn for Thames Water in 2006, while Singapore state investment vehicle GIC, Infracapital Partners, the infrastructure fund of Prudential, Citigroup and HSBC bought Yorkshire Water owner Kelda for around £3bn late last year.
However, now some senior infrastructure dealmakers say the appetite from banks to lend into these type of deals has waned as it has become increasingly difficult to raise and syndicate the debt needed to finance these transactions.
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