London reaffirms its status as the leading global marketplace for infrastructure
New research published by the City of London Corporation today reaffirms London’s position as the leading global marketplace for infrastructure finance and project management.
Launched today (Tuesday 17th April) by Charles Bowman, the Lord Mayor of London, at a Commonwealth Business Forum discussion on Infrastructure Investment at the Mansion House, the report examines why the City of London has developed into a world-leading centre for infrastructure investment and global project management.
As a centre for asset management, project management, legal services, insurance, and green finance, London is poised to play a bigger role in infrastructure financing, particularly as governments around the world are facing significant budgetary constraints and look to the private sector for financing solutions. With an annual investment gap of more than $1 trillion globally there are opportunities for investors looking to invest in stable, long-term index linked revenues such as infrastructure. The number of institutional investors in infrastructure has increased by over 116% in the last five years.
London also serves as the largest centre for infrastructure finance in Europe and beyond, responsible for 25% of the EMEA infrastructure loan market from more than 36% of European assets under management based here in the UK – or more than £8.1 trillion.
London also serves as a key global centre for raising capital, with more than $10 trillion being raised on the London Stock Exchange over the last decade, and more than 13,000 debt instruments such as bonds being listed on the LSE. London is the home market for over 480 infrastructure related companies, with operations in more than 65 countries, and a valuation of more than $2 trillion. London is also a leading centre for alternative financing such as green finance, with more than 64 green bonds raising over $20bn in seven different currencies.
Commenting on the research, Charles Bowman, the Lord Mayor of London said:
“This research really highlights why infrastructure finance is one of the City’s key strengths.
“The financing of projects around the world through London is the logical step for many companies because of our unprecedented cluster of professional services – underpinned by our rigorous focus on the rule of law - that makes the City a one-stop-shop for global businesses.
“It is reports like this that make me hugely confident for the City’s future even after we exit the European Union – we will continue to serve as the world’s centre for infrastructure finance for decades to come."