BlackRock Sees No Shortage of Capital for Infrastructure in 2019

The video discusses the complexities of funding infrastructure projects, highlighting the roles of public and private capital. It examines the competitive landscape and pricing trends, emphasizing the importance of disciplined investment strategies. The discussion also covers risk management, particularly in construction and political contexts, and the growing influence of ESG factors in investment decisions.

What are the two primary ways to fund capital investment in infrastructure?

• Through user charges or taxes

• Through crowdfunding

• By selling government bonds

• Via international loans

Where do investors find the best returns on infrastructure projects?

• In projects with guaranteed government backing

• In projects located in developing countries

• In projects with construction and operational complexities

• In projects with minimal risk

What type of risk is institutional capital typically unwilling to take on?

• Development risk

• Market risk

• Construction risk

• Operational risk

How has the importance of ESG factors changed in infrastructure investment over the years?

• It has decreased significantly

• It has become irrelevant

• It has remained the same

• It has increased significantly

What is a key challenge in applying ESG factors to infrastructure assets?

• Difficulty in assessing and implementing ESG factors

• Finding assets that are inherently ESG-compliant

• Lack of interest from stakeholders

• High costs associated with ESG compliance