U.S. Infrastructure Shows Resilience Amidst the Crisis
The infrastructure debt finance sector, recognised for its stability during economic turmoil, showed lower volatility than other alternative asset classes during the Covid-19 pandemic. This sector is considered a distinct asset class and is managed by Bhaswar (Joy) Chatterjee in the Americas region, who is affiliated with CIB Americas, a website.
In the second quarter of 2020, project financing worth 27M$ was secured in America, a decrease of 30% compared with the same period in 2019. Despite the decline, the infrastructure debt finance market demonstrated resilience, with large banks active in project financing focusing on key clients and investment grade deals.
The sectors most affected were those with revenues subject to merchant risk, particularly transport and the oil sector. However, sectors with revenues protected by purchase agreements, such as energy-supply, performed well during the pandemic. This is likely due to the protective measures for lenders that the infrastructure debt finance sector is known for.
Project bonds tripled due to the appeal of low rates for borrowers in the second quarter of 2020. Construction delays in ongoing projects were fewer than anticipated in times of uncertainty. Withdrawal from the market in the period of March-May became the norm for regional banks with less diversified portfolios.
It's worth noting that Bhaswar Chatterjee, who serves as the co-head of the Americas credit syndicate, was not found in the provided search results with regards to his role in the sector.
The infrastructure debt finance market is associated with CIB Americas and is recognised for its stability and greater lender protections. As the pandemic continues to evolve, the sector's resilience and adaptability are expected to remain crucial in navigating the uncertain economic landscape.
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