Infrastructure expertise

Infrastructure plays a critical role in the world and its economy. Accessibility to transport, communications, health and education infrastructure, water, utilities and other basic facilities form an undeniable important base of societies, quality of life and economic growth. We, at Societe Generale, recognize our role in supporting infrastructure development as investment through long-term financing is essential. Our experts in infrastructure finance understand innovation and agility are the key to bringing robust financing solutions to address the different developers, public bodies and infrastructure funds’ needs in the face of technological change and the imperatives of the sustainability and the energy transition.

Federico Turegano
Federico Turegano
Hervé Le Corre
Hervé Le Corre
Federico Turegano
Federico Turegano

More information about the profile and career of Federico Turegano at Societe Generale

 

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Hervé Le Corre
Hervé Le Corre
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Key facts & figures

Hervé Le Corre, Global Head of Infrastructure Finance

When Allego announced the closing of a new €400 million ($423m) credit facility on 19 December 2022, the largest ever debt raise in this nascent asset class, it was pushing the boundaries of infrastructure finance.
Unlike the classic project financings of proven infrastructure assets with predictable cashflows, Europe’s leading public electric vehicle (EV) charging network needed the capital to build out its grid – an essential utility for an EV market that’s still in the making.
Allego’s story is a good example of the new boundaries of infrastructure finance. Since being acquired by Meridiam in 2018, Allego has expanded its charging station network to 28,000, partly financed by 2 debt issues. At Societe Generale, we have played a leading role in arranging and underwriting the transactions, comforted by our in-house expert knowledge of the EV value chain.
To finance Allego and other pioneers of the energy transition, infrastructure finance banks are having to evolve and accept new types of risk.
As the world seeks not only to decarbonise its economies but also to reduce waste and tackle social problems, so trillions of dollars will be required for new types of infrastructure.
To assess the risks, lending banks must have deep knowledge of entire new value chains, such as that for EVs, so that they can judge the prospects and probable cashflows of nascent infrastructure businesses.

 

When I started working in infrastructure finance, we typically financed stand-alone projects When I started working in infrastructure finance, we typically financed stand-alone projects such as roads, bridges or train lines, as well as public-private partnerships for social infrastructure including hospitals.
Since 2016, we have shifted to finance digital assets like broadband.
But the fastest-growing demand for finance today is from pioneers of the energy and broader ESG transitions, challenging banks to adjust their approach.
Just as the type of infrastructure is changing, so too is the type of client. While infrastructure’s equity sponsors were previously large corporates focused on specific sectors, today they are increasingly infrastructure funds or pension funds.
They invest across a range of new sectors – from EV charging networks to smart meters, to waste recycling – asking banks to provide structured finance for unproven businesses, sometimes with new technology.
The example of EV charging networks shows how banks can adjust. With existing sectors such as petrol stations, for instance, lenders or investors can take comfort in knowing that drivers can only buy their fuel there, making revenues more predictable.

 

No one really knows, but by observing existing markets such as Norway where about three-quarters of the car fleet is already electric, it’s possible for us to make an educated guess that can lead to a calculated risk.
What’s more, the fact that an EV charging station business is diversified helps to spread the risk. In Allego’s case, it is spread across its on-street city charging stations, charging stations in supermarket car parks and installation and maintenance contracts for car leasing companies. Beyond that, Allego’s network is spread across several European countries.
Only by understanding the risks of a new sector such as this, will banks and capital markets be able to contribute to the huge scale of finance required. Within the EU alone, establishing EV networks will cost €94.3 billion by 2030, according to ChargeUp Europe.
Societe Generale has sector experts, including engineers, within our credit risk department. They have enabled us to become the first bank to finance EV charging stations at scale, just as we did for fibre optic cable a little more than 5 years ago. Such expertise is essential in order to become comfortable with new risks.

 

The growing involvement of institutional investors in energy transition infrastructure also means banks must be more agile, following our clients into new areas.
In June 2021, for instance, a consortium of 5 pension funds bought 50% of Stockholm Energi, the city’s district heating and cooling system, aiming to provide pioneering environmentally sustainable district heating, including carbon capture. Societe Generale was 1 the lead arrangers and underwriters of this acquisition finance.
The bank also supported specialist infrastructure fund Meridiam when it acquired Sofia Airport from the Bulgarian government in 2018, acting as lead arranger and bookrunner. By 2035, the airport aims to be carbon neutral, eliminating direct greenhouse gas (GHG) emissions and making alternative fuels available for airlines.
As the drive to tackle environmental and social challenges gathers speed, many new types of infrastructure business will emerge.
For example, waste management businesses are likely to require finance for technologically advanced ways to recycle plastics at scale.
It’s time, then, for infrastructure finance banks also to evolve so that they can support their clients’ necessary innovations.
To do so, they must bring together the collective intelligence of their in-house specialists across the key value chains and have the flexibility to support the transition’s emerging business models.

 

Success stories

16 Jan 2024
A gigafactory to produce greener batteries in Sweden
As Europe transitions to electric cars and, with the end of sales of new internal combustion engine cars in 2035, the...
Clients' successes
As Europe transitions to electric cars and, with the end of sales of new internal combustion engine cars in 2035, the need for electric batteries to support the transition is growing.
A gigafactory to produce greener batteries in Sweden
15 Jan 2024
Towards a low-carbon cement in Senegal
The challenges of decarbonizing African cities are numerous, considering the continent’s economic and demographic...
Powering Energy Transition
The challenges of decarbonizing African cities are numerous, considering the continent’s economic and demographic growth. The cement sector, a key sector for Africa’s development, is one of them.
Towards a low-carbon cement in Senegal
09 Jan 2024
Largest solar photovoltaic project underway in the Sultanate of Oman
The Manah 1 project, in line with the “Oman Vision 2040” will increase power generation capacity through renewable...
Clients' successes
The Manah 1 project, in line with the “Oman Vision 2040” will increase power generation capacity through renewable independent power projects.
Largest solar photovoltaic project underway in the Sultanate of Oman
22 Nov 2023
A new gigafactory in the French “battery valley”
Being one of the first of its kind in the Hauts de France region, the AESC gigafactory project will contribute to...
Clients' successes
Being one of the first of its kind in the Hauts de France region, the AESC gigafactory project will contribute to accelerate France’s energy transition and decarbonization efforts as well as reindustrialization, by scaling up the battery technology production needed for the accelerating pace of vehicle electrification.
A new gigafactory in the French “battery valley”

Our Experts' Views

27 Nov 2023
Innovation and partnerships to unlock sustainable investments in Africa
Matching Africa’s natural and human capital with financial capital is vital for its sustainable development. Societe...
Expert views
Matching Africa’s natural and human capital with financial capital is vital for its sustainable development. Societe Generale is deploying the know-how and experience of its teams to design innovative financings for the continent’s emerging entrepreneurs and impactful projects.
Innovation and partnerships to unlock sustainable investments in Africa
30 Oct 2023
How smart meters are helping Australia embrace a new energy future
Australia’s rollout of smart metering solutions is a template for upgrades to energy networks in Asia Pacific
Expert views
Australia’s rollout of smart metering solutions is a template for upgrades to energy networks in Asia Pacific
How smart meters are helping Australia embrace a new energy future
28 Feb 2023
Charging up Down Under: the potential of Australia’s electric vehicle market
Almost 90% of households in Australia own a vehicle, with over half owning more than one; and the average Australian...
Expert views
Almost 90% of households in Australia own a vehicle, with over half owning more than one; and the average Australian drives nearly 13,000km per year (Footnote 1,2). Both numbers are higher than almost anywhere except North America.
Charging up Down Under: the potential of Australia’s electric vehicle market
11 Jan 2023
Re-engineering infrastructure finance for the energy transition
Hervé Le Corre, Global Head of Infrastructure Finance at Societe Generale, has penned his thoughts on how we push the...
Expert views
Hervé Le Corre, Global Head of Infrastructure Finance at Societe Generale, has penned his thoughts on how we push the boundaries of infrastructure finance in IJGlobal Magazine - article published on January 6, 2023.
Re-engineering infrastructure finance for the energy transition

Awards and Rankings

02 Oct 2023
Societe Generale recognised by The Banker
Societe Generale has been recognised by The Banker as Investment Bank of the Year for Securitisation and Investment Bank...
Awards & Rankings
Societe Generale has been recognised by The Banker as Investment Bank of the Year for Securitisation and Investment Bank of the Year for Infrastructure & Project Finance
Societe Generale recognised by The Banker
16 Jun 2023
Several deals awarded at Proximo deals of the Year 2022
Societe Generale key clients have been awarded at the "Proximo Deals of the Year Awards 2022 for North America" and the...
Awards & Rankings
Societe Generale key clients have been awarded at the "Proximo Deals of the Year Awards 2022 for North America" and the "Proximo Infra Deals of the Year Awards 2022".
Several deals awarded at Proximo deals of the Year 2022
04 May 2023
Societe Generale wins multiple "Deals of the Year 2023" from The Banker
The Banker's "Deals of the Year awards 2023" celebrate the most impressive investment banking transactions across the...
Awards & Rankings
The Banker's "Deals of the Year awards 2023" celebrate the most impressive investment banking transactions across the broad spectrum of global capital markets.
Societe Generale wins multiple "Deals of the Year 2023" from The Banker
28 Mar 2023
IJGlobal Awards 2022: Societe Generale has been awarded several Global Awards plus Deals of the Year!
Societe Generale has been awarded by IJGlobal, one of the most respected publications dedicated to the project and...
Awards & Rankings
Societe Generale has been awarded by IJGlobal, one of the most respected publications dedicated to the project and infrastructure finance space, the following honors:
IJGlobal Awards 2022: Societe Generale has been awarded several Global Awards plus Deals of the Year!