Latin America: the emerging focus
Investors in North America feeling frustrated with the relative lack of PPP and transport activity are increasingly looking south. Mexico was the sixth biggest infrastructure debt market globally in 2017 with $12.5billion of deals, while there is encouraging activity in Peru, Colombia and Chile; including transportation PPP and the presence of European contractors and equity investors.
There is evidence to suggest these markets should no longer be considered emerging, with many deals sold to international investors based on strong financial structures. Argentina continues to provide a mix of renewables and power project deals, while Brazil recovered from its investment doldrums with over $9 billion of transactions in 2017, mainly in the renewables sector.