Infrastructure financing by the Caisse des Dépôts Benjamin Dubertret

Transcription

1 Infrastructure financing by the Caisse des Dépôts Benjamin Dubertret Paris Europlace July 3, 2012

2 Infrastructure financing by the Caisse des Dépôts 1- The rationale 2- The equity side 3- The debt side 4- Prospects 2

3 1- The rationale A natural involvement A natural involvement given the status and missions of the Caisse des Dépôts as stated in the Article L of the Monetary and Financial Code The Caisse des Dépôts et consignations along with its subsidiaries is a public group in the service of the general interest and of the country's economic development. This group has missions of general interest in support of public policies implemented by the State and the local authorities, and it can carry out competitive activities.[ ] The Caisse des Dépôts et consignations is a long-term investor and it contributes, in compliance with its economic interest, to the development of companies. 3

4 1- The rationale Different vehicles linked to our organization Equity Debt Vehicles Targeted assets CDC infrastructure General interest invesment through local and regional network CDC international Financial portfolios PIA (Program for Investments of the future) Recurring profitability Both greenfield & brownfield Mainly in France Sustainable development : transports, renewable energy Digital economy Chinese wall Savings Fund (separate balancesheet) (Social housing) Transportation Hospitals, Universities, Water treatment plants 4

5 2- The equity side A mainly domestic activity 1 bn by the end of 2011 / 1.5 bn targeted in 2014 Operates in both mature assets (brownfield 70% of the target portfolio) and new projects through public-private partnerships (PPP) and concessions Acquires a minority interest in stockholders equity Operates with other investors, such as financial or industrialists Mainly in France, but also Europe General interest proprietary investment through the local and regional development network ( 132 M in 2010) Through financial portfolios of the Savings Fund in infrastructure non listed funds ( 150 M targeted in 2012) in Europe Third party investment via the PIA : 4.25 bn for the digital economy 25% participation in GRT Gaz in 2011 ( 1.1 bn ) 5

6 2- The equity side An active participation in international funds via Marguerite Inframed Fund target size 1.5 bn 1 bn Sponsors / Commitments ( m) Geography Sector focus CdP, CDC, EIB, ICO, KFW,PKO 100 M each EU 27 but no more than 20% in one single country Transport Sector, Energy sector and Mature renewables CdP CDC EIB CDG EFG Southern and Eastern Mediterranean Region Transportation, Energy and Urban infrastructure 6

7 3- The debt side : the Savings Fund A unique transformation model Savings collected by all networks Livret A passbook and LDD 287 bn + LEP 52 bn Amounts centralised at the Savings Fund bn + Other liabilities 11.5 bn Loans 133 bn Financial assets 101 bn Social housing and city policy 118 bn Infrastructures & other 15 bn Bonds 88% Other assets 12% Earnings Regulatory capital Compensation for the State guarantee 7

8 3- The debt side : the Savings Fund An increasing activity in infrastructure financing Specific loan package of 11,5 bn for transportation, hospitals, universities, treatment water plants... Exceptional loan package to local authorities ( 5 bn in 2011 and up to 5 bn in 2012) 5,0 4,5 Infrastructure loans granted through the Savings Fund Long and even very-long term loans (up to 40 year maturity) at a rate very close to the resource cost Counterparts are both public entities and private companies under Private Public Partnership Projects Sharp increase in 2011 : 4,3 bn loans have been provided in 2011 ( 1,2 bn for PPPs) which represents 20% of the Savings Fund loans 4,0 3,5 3,0 2,5 2,0 1,5 1,0 0,

9 9 3- The debt side : the Savings Fund A crucial role played in the largest projects

10 4- Prospects : what do we know for the future? What do we know? Huge needs over the next years ( 2000 bn in the EU) Pressure on the public budget Scarcity of long-term bank debt The stance of the Caisse des dépôts in such a context The Caisse des dépôts will remain particularly involved On the equity side, even if investors appetite remains, the market could be improved, allowing a better match between supply and demand On the European front, alongside with the members of the LTIC, the Caisse des dépôts will continue to feed reflections around the project bonds issue Regarding specific projects, the Caisse des Dépôts should be particularly involved in the Grand Paris project as well as offshore wind farms On the debt side, the scarcity of long term debt will probably lead to the renewal of Savings Fund specific loan package which is coherent with the prospect of an increase in resources. 10