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 boundaries of infrastructure finance in IJGlobal Magazine - article published on January 6, 2023.
Only through in-house specialist expertise, structuring skills and agility will banks be able to meet the huge need for funding new types of sustainable infrastructure.
When Allego announced the closing of a new €400 million credit facility on December 19, 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 the Meridiam infrastructure asset manager in 2018, Allego has expanded its charging station network to 28,000, partly financed by two 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.