Private Credit Pushes Into Banks’ Infrastructure Lending Turf

“Infra private credit can generate yields of around 8%-10%”, Philippe Garrel for Bloomberg

• Investors raised $9 billion in 2023
• Market has potential to grow to $1.5 trillion in next 5 years

Private credit has room to grow in infrastructure finance, says Bloomberg. Private debt linked to infrastructure can be both floating or fixed rate, and lenders are keen to lock in these fixed rates given the jump in interest rates. Infra private credit can generate yields of around 8%-10%, compared with around 5% before the jump in rates, according to Philippe GARREL, Head of Energy Transition Funds at Sienna Investment Managers.

To know more: Private Credit Pushes Into Banks’ Infrastructure Lending Turf