The case for infrastructure debt

In today’s quickly evolving global economy, many institutional investors have turned to infrastructure debt for potential benefits ranging from an illiquidity premium over public markets to asset-liability matching characteristics. 

Amid often varying definitions of infrastructure debt, at Barings the definition centers on the type of asset generating the cash flow, with an emphasis on essential assets that meet key social or economic needs and that have the potential to offer stable, longterm cash flows. In our view, today’s infrastructure universe encompasses six broad categories:

  • Economic infrastructure such as transportation-related strategic assets including toll roads and airports;
  • Utilities and pipelines that typically carry water, sewage, electricity, natural gas and other fuels;
  • Power generation infrastructure such as renewable energy generation assets;
  • Social infrastructure such as government-sponsored publicprivate partnerships, social housing, and development of hospitals and schools;
  • Midstream and storage facilities for commodities and energy and non-energy assets;
  • Digital infrastructure including towers, fiber cabling and data centers.

You can now read the full ‘Sponsored Commentary’ article at the link below

Supporting documents

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