PARIS INFRAWEEK 2017 – 16-20 October 2017
Paris confirms its position
as the leading Financial Center in Europe
Paris, 16 October 2017 - The InfraWeek welcomed today Bruno Le Maire, French Minister of Economy and Finance, who stressed that « France is already highly regarded for the quality of its infrastructure. The French Government will continue to invest in its infrastructure should it be for transportation, broadband, climate change. Alongside the modernisation of its regulatory framework, this creates an attractive landscape for international players – investors, corporates, banks – to develop their activity on the French market, as well as in Europe and globally from Paris. In addition, France benefits from a powerful, competitive, innovative private financing – banks, private equity, complex structuration – backed by recent regulatory improvements. The key asset of this strong financial ecosystem is human capital, served by top ranking higher education and research institutions. »
Gérard Mestrallet, Chairman, Paris EUROPLACE declared: “There is no more need to demonstrate the link between investment in infrastructures and growth. The objective of this InfraWeek is to bring together major international players of the infrastructure finance community from all around the world, for a thorough dialogue on key trends in infrastructure finance. We are fully convinced of the strong expertise of the actors operating in Paris in infrastructure finance and that the Paris market place is a solid platform to overseas investments in infrastructure, namely in emerging zones.”
2 announcements have been made today:
Ambroise Fayolle, Vice-President, European Investment Bank (EIB) signed with Philippe Yvin, CEO, Société du Grand Paris, a €1bn credit agreement for the construction of a new metro line part of the Grand Paris Express project. This new credit line comes in addition to the first agreement signed in 2016 for €1bn. The EIB has invested a total of €20bn in infrastructure in Europe in 2016, nearly half of it in France (€9bn). A.  Fayolle outlined that the Junker plan should be extended to €500bn by 2020 and that the deep pipeline of projects reinforce Europe attractiveness.
Alain Rauscher, CEO, Antin Infrastructure Partners announced: “the creation of a joint Chair dedicated to private equity and infrastructure with HEC Paris to actively support the growth of the infrastructure sector and help train professionals with regards to this business which requires increasingly varied expertise and an international approach”. As Chairman of the Infrastructure Committee of AFIC (French Private Equity Association) A. Rauscher added: “In 2016, Infrastructure funds in France have a combined of €33bn of assets under management, which represents 25 % of the French private equity market.”
Today’s Paris EUROPLACE inaugural forum “Financing Tomorrow’s Infrastructures“ has globally highlighted:
1. The necessary recourse to both investors’ and banking resources for long term financing in order to cope with massive infrastructure needs – in transportation, communication, production and distribution of energy, and environment protection.  As much as close to $3 tn of capital expenditures in economic infrastructure (or $4.2 tn including social infrastructure) should be engaged annually, according to the McKinsey review Which was presented
2. The more complex but essential financing of infrastructures in emerging zones, particularly Africa, where growth and increase in living standards depend directly on the existence of efficient infrastructures, and which account for 60 % of investment needs
3. The specific challenges of financing green infrastructures which correspond to the structuring equipments needed for adapting to climate change with financial models that may have to be more innovative than the classical on of cash-flow financing, and with a public-private equilibrium to be revisited.
France already has a long history of proven success in infrastructure finance:
1. France benefits from a strong position in infrastructure investment with €4.8 bn for brownfield projects, €3.4 bn for greenfield projects and €3.6 bn fo refinancing in 2016.
2. According to a review by AFIC, the French professional association for private equity, infrastructure funds operating in France accounted in 2016 for over €33 bn of assets under management, i.e. 25 % of the French market of private equity, with a year on year growth of €8 bn or 28 %.
3. AFG, the French asset management association, has identified over 60 infrastructure funds operating in France and covering European and overseas markets.
4. French banks continue playing a prominent role in lending: 4 banking groups are listed among the largest credit providers in project finance with €25 bn of new loans in 2016, representing a world market share of close to 11 %.
The Paris InfraWeek is a full week of events organized by Paris EUROPLACE with the support of the French Ministry of Economy and Finance, jointly with Inframation, McKinsey, LTIIA, OECD, Ardian, Natixis, HSBC France, Mirova and Institut de la Gestion Déléguée. During the InfraWeek close to 150 speakers and panelists participating in over 12 specific events will share views with more than 1.000 infrastructure finance professionals who registered from all around the world.
About Paris EUROPLACE:
Paris EUROPLACE is the organization in charge of developing and promoting the Paris financial marketplace and the French financial industry internationally. It brings together all financial industry stakeholders; its 400+ members include issuers, investors, banks and financial intermediaries, insurance companies; attorneys and accountants, consulting firms, etc.
LinkedIn: Paris EUROPLACE
Twitter: @europlace