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Canada Infrastructure Bank
November 2018
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Canada Infrastructure Bank November 2018 1 CIB Mandate In Invest - - PowerPoint PPT Presentation
Canada Infrastructure Bank November 2018 1 CIB Mandate In Invest - - PowerPoint PPT Presentation
Canada Infrastructure Bank November 2018 1 CIB Mandate In Invest $35B Attr tract private capital Into new infrastructure projects In the publi lic in interest Transfer significant usage or demand risk Provide advisory services
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We will invest >$5bn in each of the focus areas
Gr Green In Infrastructure Publi lic Tran ansit Tran ansport an and Trade
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Building Blocks – Expanding on success of PPPs
Us Usage & Revenue Design Build Finance Operate & Maintain Design Build Finance Design Build Design Bid Build
Government Financing CIB Investment Debt Equity Government Financing Debt Equity Government Financing Government Financing Government Financing
RIS RISKS RE RETAINED
Construction Risk Financing
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CIB Investment Criteria – Type of Project
Publi lic In Interest Su Sustainable le Tran ansformative
Ba Bankabilit ility Go to Mark rket Procurement St Strategy Level l Pla layin ing Fie ield ld
Reasonable Prospect
- f earning returns on
Investment Competing Infrastructure
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CIB Investment Criteria – Structure
CIB seeks CIB does NOT
- To fi
finance pr proje
- jects
- Private sector ris
risk sha sharin ing
- Construction
- Usage and revenue, ramp-up
- Capacity
- Regulatory
- Operational
- Private investment = a mult
ultip iple le
- f CIB’s
- Strong alignment of all partners
- Level playing field
- Provide recurring funding
- Take all of the risk
- Crowd-out private investment
with cheap capital
- Allow first money out for private
investors
- Create unfair market advantage
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CIB will fill in gaps to improve viability of Projects
FLEXIBLE TERMS FLEXIBLE INSTRUMENTS FLEXIBLE RETURNS
- Deb
Debt or
- r eq
equit ity In Investment
- Senior/preferred or subordinated
- Long term or short term
- NO
NO Gr Grants
- Investment: 0% to market pricing
- Pricing will depend on the requirements of
the project
- Protect
CIB investment, but allow developer to manage project effectively
- Alignment
- f
interests between all parties
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CIB Market Roles
CIB actively works with the Public and Private Sector
Ca Canada In Infr frastructure Ba Bank
- Market Sounding
- Stapled Investment Products
- Treeing with Bidders
- Co-Investment & Syndication
- Sell Down
Public lic Sect ector Spon
- nsors
(Government Sponsors and Procurement Agencies)
- Co-investment of Development Costs
- Advisory & Structuring
- Bankability Assessment
- Private Sector Risk perspective
- “Backstop Commitment”
- Stapled Investment Products
- Standardized Investments for
Scalability
- Go to market strategy
- Unsolicited Projects
- Market Development Ideas
- CIB Investment Requests
Priv rivate Sect ector Spon
- nsors
(Proponents, Bidders and Debt& Equity Investors)
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Market Engagement
Uns Unsolic icited Proposals Bac Backstop Com Commitment St Standardized In Investments s for
- r
sc scalabil ility
De Develop a a cr credible pr process ss for
- r all
all le levels s of
- f governments
- Credentials based
procurement
- Early projects
- Appropriate market testing
- Competitive process
- Maximize risk transfer
- Convene private sector capital
- Limit CIB investment to required
financing gap
De Develop a a cr credible pr process ss for
- r all
all le levels s of
- f government to work
- rk wit
ith
- Debt or equity programs
- Smaller investments
- Create scale to syndicate
Mar arket disc discovery of
- f the fina
financing gap ap for
- r CIB in
investment
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We have had over 120 outreach meetings
Project Di Discussions
> > 55 proje
jects 50% 50%unsoli
- licited
Activ ively ly Engaged
10 projec ects
Clos losed
1 in inves estment
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Réseau Express Métropolitain (REM)
- Interest Rate =1% escalating to 3%
- $2.9 billion of private capital is more than two times CIB’s
- Core investment area for CIB
- Meets CIB’s public interest and bankability criteria
- Five months to negotiate and finalize
$1,283,000,000
Senior Secu cured Le Lender
15-Year Term Loan
August 2018
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Inventory of Canadian Infrastructure Projects
- Content provided by project proponents, managed by CIB
- Accessible to any user, free of charge
- Comprehensive list, not just projects meeting CIB criteria
- Projects in all stages of development
- Submission details to include project description, cost, stage, timing
- Expected launch by mid 2019
Objectives Promote opportunities to domestic and international service and capital providers Foster collaboration, sharing of best practices and coordination of procurement
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We are building more infrastructure for Canadians and a larger addressable market
More large scale transformative projects More “government demand” for private investments More equity and debt
Sophisticated unsolicited proposal process
More revenue, usage and operating risks and returns
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